- "Propensity-to-buy" models
- Probability of default models
- churn Models
- Predictive models for "Strategic & Tactic decisions"
- Customer-Life-Time-Value forecasting
- Direct ROI simulation
- Optimal resource allocation & planning
- Next Best Activity/Offer/product
- Text Mining
- E-mail campaign optimization
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Next Best Activity/Offer/product
These kinds of models are a special case of the classical "propensity to buy" model.
These models are sometime also called "Suggestion/Recommendation systems".
Let's take a practical example: Let's assume that you are selling 3 different products: A, B and C. You want to create an automated system that selects "the right product for the right prospect". In other words, you want to know which of the 3 products has the highest chance of purchase for a given customer.
This system (that selects "the right product for the right prospect") is quite simple, conceptually:
- Create (with TIMi) 3 "propensity to buy" predictive model (one for each product: A, B and C).
- Apply your 3 predictive models on your customer database:
For each prospect inside your customer database, you obtain:
- From the model 1: the probability of purchase of product A.
- From the model 2: the probability of purchase of product B.
- From the model 3: the probability of purchase of product C.
- For each customer, you now have 3 probabilities (one for each product). You select the product with the "highest probability of purchase" (amongst the 3 probabilities that you just computed for this customer) and you simply propose it to your customer.
The above system can be refined (instead of using 3 predictive models that are of the "one-against-all" type, we could have used 6 predictive models that are of the "one-against-one" type) but the principle stays the same.
To create the "individuals models", you should, of course, use a database containing as much information as possible about your customers. You can collect all the off-line and on-line activities of your customers and save them into your database. The more data about your customers (the more columns describing your customers), the better. TIMi is the only datamining tool that is not limited in the numbers of columns that it can process. Anatella is the only ETL tool on the market that is able to process data tables containing several thousand columns.
The accuracy of such system ("Next Best Activity/Offer/Product" system) is only as good as the accuracy of the "individual predictive models" that are composing the system. Once again, TIMi is the preferred solution when building such systems because:
- You need very high accuracy for the individual predictive models
- You need a very fast analytic tool to create the many different predictive models. TIMi is, by a very large margin, the fastest analytical tool on the market.
Next: E-mail Campaign Optimization
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