9月 012017

International Talk Like a Pirate Day is Sept 19 ... which always gets me thinking and wondering about modern-day pirates. Most movies usually focus on pirates from the Golden Age of piracy (a couple hundred years ago), when pirates typically stole ships and booty (treasure). But modern day pirates usually board [...]

The post Where do modern day pirates attack? appeared first on SAS Learning Post.

8月 312017

In my first post of this blog series, we learned how three education customers are using SAS. Today, we'll hear about the positive impact that SAS and analytics are providing for users and the education institutions. In this post, you'll hear from: Linda Sullivan, Assistant Vice President for Institutional Knowledge Management, [...]

Education analytics: The impact of using SAS and analytics was published on SAS Voices by Georgia Mariani

8月 302017

The analytical community is getting increasingly interested the concept of attribution. And while much of this is focused on digital marketing attribution, I want to take a step back to describe the wider application of attribution and the traditional techniques that can be used to solve a range of attribution challenges.

I’ll use as an example a UK bank that I worked with that was collecting debt on customers that had defaulted on loans. For many businesses, there is a clear result in customer engagements (i.e., the customer responded, purchased, etc.) In this instance, while it’s known which customers made a payment, it might be unclear which action (or combination of actions) triggered payment.

Collections teams often have paths of activities that are analogous to customer journeys (how’s that for lateral thinking?). It may be that a high-risk customer will receive a text message five days after they have defaulted, a letter at 10 days, and a telephone call at 15 days. Collections teams will often have different paths for high-risk and low-risk customer. A low-risk customer may receive the same contact escalation path (text/letter/phone call) but on a longer cycle (e.g., at 10/15/20 days).

Multivariate testing helps reveal hidden relationships

My banking client had wisely created a test of the two different paths using two similar sets of customers. The more aggressive path collected more debt, but the costs were higher. However, there were options to improve upon this, and we chose to build two customer-level predictive models – one for each path – to predict the likelihood of payment.

This led to the creation of four segments that enabled much more effective decisions:

  • Model 1: High-probability to pay (for both paths)
    • Action: Apply low-risk path to save cost
  • Model 2: Low probability to pay (for both paths)
    • Action: Apply low-risk path to save cost (but also test an accelerated strategy)
  • Model 3: High probability to pay for high-risk path (but low probability to pay on low-risk path)
    • Action: Apply high risk path to maximise uplift
  • Low probability to pay for high-risk path, (but high probability to pay for low-risk path)
    • Action: Apply low-risk path

These models uncovered ways to improve collected debt by 2 percent with no increase in cost, which is a significant performance improvement. More importantly, it highlights the value of attributing outcomes to actions because many collections departments focus on perceived risk as they begin collection paths and do not attribute collected debt to specific activities.

Lessons for marketers

This example is a good first step towards a detailed attribution solution because by treating the path as one action, the halo and cannibalisation effects of the different actions are accounted for. Of course, there are opportunities to dive deeper and understand which of the underlying activities are driving the behaviour and multivariate testing can support this.

There are a few clear takeaways here for marketers:

  • Good test data is essential to achieve good attribution results.
  • Customer-level attribution can deliver results that are applicable across all channels.
  • Traditional modelling techniques can support building conditional models or net-lift models using different paths.
  • Simplifying the problem (as much as possible) will give you results that are more easily incorporated into your campaign strategies.

To learn more about how SAS Customer Intelligence 360 uses multivariate testing to create better customer experiences, read this blog post by Suneel Grover.

How is debt collection like attribution modelling? was published on Customer Intelligence Blog.

8月 232017

There is an expression in the military that goes something like this: Military leaders train and prepare for the next war using available information, which typically means they're planning for the last (previous) war -- and that's a recipe for disaster. So what does this have to do with utilities [...]

Are utilities fighting the last war? was published on SAS Voices by Mike F. Smith

8月 172017

Robots - everyone has probably been fascinated by the idea of robots at one time or another. From the early science fiction robots (such as Klaatu's robot Gort) to the mid-1980s movie robots (like Johnny 5), they have been portrayed in many different ways in fiction. These days, with the [...]

The post Mapping out the next robot invasion! appeared first on SAS Learning Post.

8月 152017

If you know me, you probably know that I spend a lot of time on the water. I like speed paddling (dragon boat, outrigger canoe, surfski, and racing SUP), and I also have a big pontoon boat at Jordan Lake where I try to go fishing at least once a [...]

The post Tracking floods and droughts in Jordan Lake, NC appeared first on SAS Learning Post.

8月 152017

Veterans transitioning back to civilian life face a number of challenges, many of which involve working in a non-military environment. The Honor Foundation helps Navy SEALs and other current and transitioning members of the U.S. Special Operations community enter civilian life. Last week, a group of former special operators visited several [...]

Helping military veterans transition to civilian life, pursue analytics careers was published on SAS Voices by Trent Smith

8月 112017

Recently, I interviewed three SAS customers to understand firsthand how each is using data visualization and analytics in education. In this series of blog posts, I’ll take you on a journey to learn how these customers are turning their data into insights to be a more data-informed and analytical organization. [...]

Education Analytics: How SAS is used in education was published on SAS Voices by Georgia Mariani

8月 102017

The State of Illinois faces an unprecedented budget crisis, with more than $15 billion in unpaid bills. While experts will argue over the exact causes of states' financial struggles, many are pointing to the problem of state leaders avoiding long-term budgetary problems for short-term fixes. Illinois is not alone in [...]

Battling the government budget crisis with analytics was published on SAS Voices by Trent Smith