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Why You Should Make Predictive Analytics Part of Your Strategy!!!

There are many reasons why predictive analytics should be a high priority

for your company’s strategy. The competitive landscape is changing

every day and customers’ access to competitor information is driving

thinner margins in most verticals. Customers have become more

demanding and selective, and have more choices. It is clear from research

that companies thriving in the new global digital environment are those

that are willing to adapt to change and willing to innovate ahead of their

competition. Those companies that are more agile, leaner, and quicker to

anticipate the market needs have embraced predictive analytics.

What is Predictive Analytics?

Let’s start talking about predictive analytics with a simple but important question: What is Predictive Analytics?

Predictive Analytics examines patterns found in internal and external data to identify future risks and opportunities.

It is necessary to clarify that predictive analytics is not only about predictions or the future. Predictive analytics also

offers more data analysis and data mining capabilities to identify patterns where potential issues and opportunities

exist. Predictive analytics has the ability to drive innovation in most areas of your business.

What Could You Do To Benefit the Most from Predictive Analytics?

With the dynamics in the marketplace, there are many areas in marketing such as, cross-sell, up-sell, customer

retention, direct marketing, pricing and customer relationship management (CRM) that could benefit from data

analysis. Other potential areas where predictive analytics has had a major impact are: risk assessment and

management, fraud detection, disease prevention and disease management. Some of the leading companies that

have embraced predictive analytics in all aspects of their business are Amazon, Netflix, LinkedIn and Facebook.

Amazon and Netflix have been using predictive analytics almost from the beginning, about two decades, to drive

sales through recommendation engines and customer satisfaction. LinkedIn and Facebook have been around for

about a decade and use predictive analytics in almost all aspects of their business decisions. Although these

companies are relatively new in comparison to blue-chip giants like Walmart and IBM, they are now some of the

biggest companies in the world. Why? Because these companies have pioneered the use of predictive analytics in

managing customer relationships and target marketing. If these examples are too “abstract” then following are real

life examples of what Dunn Solutions Group (DSG) has done for its clients!

Chicago Minneapolis Raleigh Bangalore

www.dunnsolutions.com (847) 673-0900

How Using Predictive Analytics Has Made Our Clients Become More Profitable

Client: Online Mass Retailor

Business Area: Cross-sell, Up-sell

Challenge: Online Mass Retailer was missing out on the opportunity to add additional

revenue by providing differentiated customer experiences, and by offering the right items

in the right order to increase cross-selling opportunities.

Solution: Identified optimal product mix and cross-sell offering. Helped to customize the

consumer experience and optimize revenue through more revenue per customer.

Result: Recurring annual benefits of more than $80M in additional cross-sell revenue and

an average increase of $.94 per customer purchase.

Client: Fortune 100 Insurance Company

Business Area: Target Marketing, Product Performance Simulation, Pricing

Challenge: A subsidiary of a Fortune 100 insurance company provides health insurance

services in 29 states and was facing specific new competition. Products were underpriced

for claims experience. Larger competitors were quickly gaining market share.

Solution: Performed Segmentation of Customers. Developed Forecasting Simulation Tool

to predict product performance. Developed Marketing Mix and Market Potential. Market

based assessments to better target customers.

Result: Transformed the subsidiary into the fastest growing individual health insurance

company in the nation at a time when most in the industry were shrinking. Doubled the portfolio with targeted high-

value customers in just 18 months to over 370,000 customers and $500 million in new annual revenue.

Client: Top 10 U.S. Bank

Business Area: Operational Optimization, Intervention Modeling

Challenge: Top 10 U.S. Bank faced with mounting delinquencies in all banking areas. A

huge backlog of foreclosures.

Solution: Designed a predictive analytics modeling engine and dashboard reporting

environment that tracked all consumer lending and mortgages. Tracked customers through

models to help determine when and what action best fit the situation. Developed staffing

and capacity planning models for collections and default.

Result: Generated models on defaulting loans which justified an additional $2.2 billion in TARP money. Used

targeted messaging to better handle the collections and default, saving $9 million each month in call center

performance. Increased collections and curing by 25% through better customer risk targeting, collecting an

additional $40M each month.

Chicago Minneapolis Raleigh Bangalore

www.dunnsolutions.com (847) 673-0900

Client: Higher Education

Business Area: Student/Customer Retention Analysis

Challenge: A large online higher education organization was facing ever increasing student

churn.

Solution: Identified key drivers that were causing higher than normal student churn.

Developed a series of intervention and reacquisition models for admissions and professors

that identified key drivers that contribute to student churn at critical points in time to save

the student.

Result: This drove a project ROI of 328 times the cost of the project, a 15% student retention from intervention five

year program, and one time 5% reactivation campaign of inactive students.

How Dunn Solutions Group Helps You Have The Competitive Advantage?

There are many competitive advantages to gain by using predictive analytics and Dunn Solutions Group expertise.

Why fall behind when leading companies are thriving because they use predictive analytics and Dunn Solutions

Group? Why Dunn Solutions Group for Predictive Analytics? Because most firms use a cookie cutter approach and

return an average of only $10.66 for every dollar spent. We are different!!! We pride ourselves on getting to know

your business, your issues, and your challenges. We have found more success for our clients by understanding what

is needed and how to implement it. Feel free to contact Jeff Goffinet, Director of Sales at (847) 673-0900 x 104 or

jgoffinet@dunnsolutions.com to take advantage of our ability to help our customers return an average of $100

dollars for every dollar spent on predictive analytics.

Solutions Retention and

Intervention Models

Churn Modeling

Customer Lifetime Value

Analytics