SOLUTION INSIGHTS > SOLUTION INSIGHTS BY INDUSTRY

Based on extensive industry review, the tables below show the most commonly used applications of predictive modeling for selected industry groups.

Financial Services

  Banking & Mortgage Lending Credit Cards Insurance Securities / Brokerage
Customer Relationship Management (CRM)        
Precision Marketing – Acquire New Customers New customer acquisition New customer acquisition New customer acquisition New customer acquisition
Retain Customers – Enhance customer loyalty Lifetime value analysis
Loyalty programs
Lifetime value analysis
Loyalty programs
Lifetime value analysis
Loyalty programs
Lifetime value analysis
Loyalty programs
Defection and Churn Management Proactive programs to deter defection and churn Proactive programs to deter defection and churn Proactive programs to deter defection and churn Proactive programs to deter defection and churn
Cross Sell / Up Sell Design of cross sell and up sell programs Design of cross sell and up sell programs Design of cross sell and up sell programs Design of cross sell and up sell programs
Risk Management        
Fraud Detection   Detect and deter fraud directly in the transaction stream in real time. Manage fraud in claims – especially health, auto, and workers comp.  
Credit Scoring Custom credit scorecards for retail and business lending Custom credit scorecards for retail and business lending Custom scoring of underwriting risk.  
Billing Review     Prevent accidental under billing  
Planning & Optimization        
Forecasting Forecast prepayments
Forecast interest rates
Forecast defaults
  Forecast specific liability types “Quants” are major consumers of predictive models in constant search of alpha opportunitie

Healthcare

  Healthcare Providers
Customer Relationship Management (CRM)  
Retain Customers – Enhance customer loyalty Wellness programs – pay for performance planning
Impact of clinical practices on finance
Risk Management  
Fraud Detection Identify potentially fraudulent claims before they are sent to payers
Billing Review Review patient billing for unintentional under billing prior to issue
Planning & Optimization  
Forecasting Capacity prediction – when divert situations are likely to arise
Optimization Self-pay returns optimization – prioritize claims most likely to pay in a timely manner
Claim Denial Management Predict in advance claims likely to be rejected before they are sent to payers.
Other Payer negotiations – identify key drivers for underperforming payers

Telecom & Utilities

  Telecom Utilities: Electric, Gas, Water
Customer Relationship Management (CRM)    
Precision Marketing – Acquire New Customers New customer acquisition  
Retain Customers – Enhance customer loyalty Lifetime value analysis
Loyalty programs
 
Defection and Churn Management Proactive programs to deter defection and churn  
Cross Sell / Up Sell Design of cross sell and up sell programs Identify customers most likely to accept conservation rewards programs
Risk Management    
Credit Scoring Custom credit scoring for major business customers Custom credit scoring for major business customers
Billing Review Detect and correct unintended under billing. Detect and correct unintended under billing.
Time to Failure   Predict time to failure on generation equipment, transformers, or other capital intensive mission critical equipment subject to variable operating conditions.
Planning & Optimization    
Forecasting Forecast demand by the (hour / day) over the coming (24 hours / week / month) to balance loads and maintain service levels. Forecast the price of (gas / electricity / water) by the (hour / day) over the coming (24 hours / week / month) to optimize wholesale purchases.
Forecast demand to prevent outage.
Optimization   Optimize the output of a network of generating plants for least cost.

Government / Education / Non-Profit

  Banking & Mortgage Lending Credit Cards Insurance
Customer Relationship Management (CRM)      
Precision Marketing – Acquire New Customers Attract citizens to specific programs Student recruitment New donor acquisition
Retain Customers – Enhance customer loyalty   Alumni giving and loyalty programs Loyalty programs
Defection and Churn Management   Identify students at risk of dropping out  
Cross Sell / Up Sell   Design of programs to increase alumni year-over-year contributions. Design of programs to increase year-over-year contributions.
Risk Management      
Fraud Detection Tax return audit evaluation
Social services claims evaluation
Manage fraudulent aid requests  
Billing Review Property tax billing review    
Planning & Optimization      
Forecasting Demand forecasting for municipal services    
Optimization   Evaluate student success and outcomes  

Manufacturing, General Business, Transportation & Logistics


  Manufacturing and General Business Transportation & Logistics
Customer Relationship Management (CRM)    
Precision Marketing – Acquire New Customers New customer acquisition New customer acquisition
Retain Customers – Enhance customer loyalty Lifetime value analysis
Loyalty programs
Lifetime value analysis
Loyalty programs
Defection and Churn Management Proactive programs to deter defection and churn Proactive programs to deter defection and churn
Cross Sell / Up Sell Design of cross sell and up sell programs Design of cross sell and up sell programs
Risk Management    
Fraud Detection Detect fraudulent warranty claims  
Credit Scoring Custom credit scorecards for commercial and retail credit Custom credit scorecards for commercial credit
Billing Review Prevent unintentional under billing in business with high volumes of periodic billings. Prevent unintentional under billing in business with high volumes of periodic billings.
Time to Failure Predict time to failure on capital intensive mission critical equipment subject to variable operating conditions. Predict time to failure on capital intensive mission critical equipment subject to variable operating conditions.
Planning & Optimization    
Forecasting Forecast supplier costs
Forecast end user demand
Forecast raw materials and energy prices
Forecast supplier costs
Forecast end user demand
Forecast raw materials and energy prices
Pricing Forecast price / volume relationships to establish pricing for existing and new products. Especially useful in automotive. Forecast price / volume relationships to establish pricing for existing and new products.
Optimization Model the operation of continuous process plants or operations to optimize output based on different input and operating constraints.
Optimize the supply chain.
Utilize predictive modeling to bring new levels of sophistication to statistical process control
Optimize routing
Optimize rolling stock utilization

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