In recent years, it has become easier for companies to collect information on their operations, clients and prospects. Credit cards, online tracking, loyalty programs, utilization reports, and other metrics are integral parts of the business landscape that fill servers and databases.
But when was the last time you critically reviewed the reports and analysis you receive from your internally collected data? Which of your business decisions could be supported by extracting additional insight from the data (internal or customer) that you already have?
More and more we are being asked to apply advanced analytics and critical thinking to data collected in the course of business operations. In doing so, weve been able to help in a number of ways:
1) Damage Control:
A hotel company wanted to predict the reduction in value (if any) from a customers exposure to lower- performing locations in its network. Using recent advancements in Customer Lifetime Value analysis (far beyond regression-based models) and thinking, we concluded whether underperforming locations were reducing the brands value by undermining customer connection.
2) Determine Best Practices:
A services company with over 1400 locations wanted to share best practices for driving improvements to the bottom line. Using CHAID and Latent Class segmentation, we examined their internal data (e.g., number/type/wages of employees, customer volume, rate paid, how booked, etc.) to prioritize opportunities to reduce spending (with minimal impact) or increase investment (with maximum impact). They then could determine what elements of a locations success could/should be replicated across the organization.
3) Localization/inventory control:
Successful and insightful location managers know what sells, to whom, and when. Some patterns may not be as obvious particularly when managers are looking across multiple locations but by diving into the actual transactional data, we are able to put concrete numbers in front of managers that can support or change their intuition and drive more fact based decision making.