Awards highlight smartest predictive analytics
Predictive analytics solutions provider SPSS has announced the winners of its annual 'Insight Awards', presented at the 2009 Directions User Conference in Las Vegas, USA.
Established in 2004, the Insight Awards recognise companies that have gained exceptional business value and ROI from predictive analytics. Advance Auto Parts, Bancolombia and Nu Skin Enterprises were recognised for their innovative use of predictive analytics software to improve market basket analysis and supply chain optimisation, to monitor and identify suspicious money laundering activities, and to increase marketing campaigns that reduce churn, respectively.
- Advance Auto Parts Advance Auto Parts, a large retailer of automotive parts in the United States, uses SPSS predictive analytics for market basket analysis and supply chain optimisation to manage inventory at warehouses and individual stores, to help it use all its data assets to produce, evaluate and deploy analytical models on SKU association modeling, market basket and cluster analysis when processing sales transaction data. The company now analyses and better understands merchandise affinities to identify customer preferences, improve cross-selling, and optimise its products. This has led to improved availability, overall profitability, higher propensity to move SKUs at stores, and, most importantly, increased customer loyalty and satisfaction.
- Bancolombia Bancolombia uses predictive analytics to monitor the transactional patterns of its customers. Bancolombia is committed to prevent money laundering activities in its organisation, implementing pattern recognition, anomaly detection, risk analysis and predictive modeling capabilities that IBM predictive analytics software offers. Employing this technology, the bank reduced the number of suspicious operations that required auditing by more than 90%. The bank also increased accuracy in identifying positive cases of money laundering, helping investigators to easily adapt models to the changing tactics of those engaged in this criminal activity. Additionally, the bank has improved the efficiency of its auditing process as it increased the number of investigations that finally ended in reports to the authorities from less than 25% to more than 60%.
- Nu Skin Nu Skin markets personal care and nutrition products through a global network of more than 750,000 independent distributors. The organisation adopted predictive analytics to build, validate and deploy predictive models to improve its marketing campaigns and segmentation and, perhaps most importantly, improve its distributor retention. The company's business development department built propensity models that allowed it to identify customer and distributor segments to significantly improve retention in a key market by 40%. With these models, Nu Skin was able to better understand customer and distributor trends, and then successfully re-engage distributors on an individual basis with event-based marketing activities.