The fundamental goal of Analytics is to help organizations by leveraging data in the mostsophisticated manner to reach the right customer through the right channel, with the rightproduct, at the right price, and at the right time.Analytics can progress along two lines:
Using existing patterns/metrics/performance indicators or Industry generic metrics or Company specific metrics to analyze data
Using Sophisticated statistical/data mining tools to derive new performanceindicators i.e., Developing Statistical ModelsData collection and analysis are viewed as a continuing and iterative process and ideally over time business decisions are refined based on feedback from earlier analysis and consequentdecisions. It follows procedures including data extraction, loading and cleansing, datawarehousing, data modeling, intelligence/ analytics, driving insight.As customers avail of a basket of services, from a basic checking account to more advancedloans and brokerage services, the channels and product offerings will have to becontinuously evaluated to ensure that a service provider is able to reach the customer with acomplete view of what the customers needs. In situations where personalized service isrequired on an individual customer basis, it becomes important to look at transaction leveldata, as compared to data summarized by just channels and/or products. This type ofindividualized attention is standard for clinical trials in the pharmaceutical sector, and is alsorelevant in areas such as Wealth Management.
1. Consumer Finance
Analytics finds extensive applications in consumer lending of all types, and these can bebroadly viewed as a combination of marketing and risk management - both at the front endand the back end. To start off, a company is interested in attracting the right kind ofcustomers for its products. A comprehensive profiling and segmentation exercise of itsexisting customers will help a company identify prospects for the right kind of product.Subsequent to profiling, Analytics can also help in:
Identifying prospects most likely to respond to a company’s service offerings by
applying customized Response Scorecards.
Weeding out “risky” prospects by applying continually updated Acquisition Risk
Determining magnitude of product offering by estimating the ability to manage therisk of each acquired customer.