Video name: Business Analytics: Data Trends Let

Businesses Spot New Opportunities

Link: https://www.youtube.com/watch?v=HbHTvqZE3D8
Canvas location: Week 2 - Introduction to Business Analytics

Transcript
Out of all the data that's out there in cyberspace, 90% of it has been created in the
last two years, just mining cords and hordes of data is pretty daunting to today's
execs. So a lot of the clients that I talked to say to me, you know what, we've got
years and years of data, we have no insight. All these companies are trying to reach
the human being and the only way to know who your customer is, is to start looking
at some of the behaviors or those breadcrumbs that they're leaving behind.

If you look at a grocery store, you have limited shelf space so you have to make
decisions all the time of what products to put on your shelf and this one grocery
chain said “Hmmm, let's look at all of the slow moving products, the ones that people
buy maybe once or twice every two to three years”. One of those happen to be
cream of tartar so they removed it from the shelf. Well, what that did was it
absolutely ticked off a lot of Baker's because they said if this store doesn't have
cream of tartar they must not be serving the Baker. So absolutely had this ripple
effect of turning off a lot of their consumers. So this notion of knowing who your
customer is and who you're trying to reach the products on your shelf absolutely
matter.

One of the examples that I love to talk about is an insurance company in South
Africa and how analytics help them be more effective in determining which of their
accidents were fraudulent. Most accidents happen around 10 a.m. in the morning
and those accidents that happen between 10:00 p.m. and 5:00 a.m. Those were the
ones that were suspect so if you could take a look at all of the claims that they have
you can actually help them determine if there's something fraudulent going on. This
insurance company in South Africa saved 2.3 million dollars in the first four months
after looking at analytics and determining which ones of these were fraudulent.

There's a ton of hidden connections that analytics helps our clients discover, one for
example is around how things like the weather can affect sales of products. Who
would have thought that when it rains the sales of things like cake go up and when
it's sunny who'd have thought that paninis would be on the increase right. So
imagine a bakery who could say hmm I'm going to actually bake only the amount of
bread that we need for today because of the weather, because of what's happening
with the sporting event nearby, because what's going on in my local community. One
great example is the Baker that actually looked at the weather and was able to
forecast what was hot and what was going to move that day actually increased their
profitability by 20%.

Every client that we talked to has the same question: Who's my customer? and What
do I know about them? How do they behave? How do they respond what matters to
them? So whether it's a retailer trying to reach a consumer or an insurance agent
trying to reach the insured or maybe a healthcare provider trying to reach the patient
you're all trying to do the same thing which is provide better service if you're going to
provide better service you better know who they are.