PREDICTIVE ANALYTICS STRATEGY FOR YOUR INDUSTRY

SATVIK INCORPORATED
Proprietary of Satvik Inc

SAN FRANCISCO I DUBAI I BRUSSELS I BANGALORE

AGENDA INTRODUCTION TO SATVIK BUSINESS ANALYTICS

CUSTOMER/MARKETING ANALYTICS

OPERATIONAL ANALYTICS

RISK ANALYTICS

ANALYTICS ROADMAP

WHO WE ARE >>

ABOUT US ABOUT US
SATVIK, a new age information management solution provider, delivers real results to global businesses, ensuring highest level of efficiency. Satvik offers a consulting-led, integrated portfolio of Analytical & Mobility solutions, delivered through its unique Universal Network Delivery Model. We have long term customer engagements with Fortune 1000 companies such as Nokia, Samsung, Nestle, TYCO, Research in Motion (RIM), Wachovia, Nissan, United Bank, LG, Siemens Gigaset, etc. providing various analytics and mobility solutions. Headquartered in San Francisco, Satvik offers Analytics & Mobility Solutions for organizations across the globe. We provide high quality services to our global clients through our offices in San Francisco, Dubai, Brussels and Bangalore. Our global delivery model comprises the right synthesis of on-shore and off-shore delivery systems to provide cost effective solutions to our clients. Satvik has a large pool of Domain Consultants, Statisticians, Mobile Technology Architects, Social Media Analysts,Web Analysts & Technical Architects who have executed many descriptive predictive analytics projects for large multi national corporations across the globe.

OUR PARTIAL CLIENT LIST

Doha Bank

BUSINESS INTELLIGENCE (BI) VS. BUSINESS ANALYTICS (BA)

BUSINESS INTELLIGENCE (BI)

Answers the questions such as What happened, When, Who, How many etc

Includes reports, dashboards, KPI scorecards, and ad hoc analyses

Provides information on the past and enables reactive decisions

Eg :- Western region is not meeting the targets so create a program to cover western region

BUSINESS ANALYTICS (BA)

Answers the questions such as how do we identify and target our most profitable customers, What will be the impact if we change the price or service of the products, How do we detect frauds, which of the customers are likely to leave us in future?

Includes Predictive models, Forecasts, Customer scoring, ROI Analysis etc Predicts future behavior and enables proactive decisions Eg :- Western region is not meetings targets, Customers of particular profile are likely to leave this summer so create a specific program to retain them

BUSINESS ANALYTICS VALUE CHAIN

LOW HIGH

USE OF STATISTICS

HIGH

Development of Rigorous analysis of models Transition of current reports Data to identify Audit / Validate patterns model Tracking of models Forecasting & Simulation Trend analysis

LEVEL OF INNOVATION
Data import and data stitching from multiple sources Variable Capping, missing value, outlier treatments Data Cleaning Data quality management

Standard & ad-hoc reporting Tool based dashboards with drill down capabilities Prepare action oriented / executive reports Automation of management information systems reporting

Data mining

Data integration from disparate systems ETL Data mapping & meta data creation Building data mart

Segmentation

Hypothesis validation

LOW
DATA MART CREATION DATA CLEANING

DASHBOARD / REPORTING

DESCRIPTIVE ANALYSIS

PREDICTIVE ANALYTICS

OUR OFFERINGS >>

OUR ANALYTICAL FRAME WORKS

REAL TIME DELIVERY, EFFICIENCY BUILDING, TRANSFORMATION
SATVIK ANALYTICS CONSULTING SOLUTION PORTFOLIO MARKET/CUSTOMER INTELLIGENCE ANALYTICS OPERATIONAL INTELLIGENCE ANALYTICS
STATISTICAL/ MATHEMATICAL MODELS BEST PRACTICES

ADVANCED ANALYTICS

RISK MANAGEMENT ANALYTICS

FINANCE ANALYTICS PLANNING AND PERFORMANCE MANAGEMENT

AD HOC ANALYSIS

BANKING AND FINANCIAL SERVICES INSURANCE

RETAIL AND CPG

PUBLIC SERVICE GOVERNMENT

AUTOMOTIVE

PRE - BUILT SOLUTIONS PROCESS - BASED ANALYTICS

ENERGY, PUBLIC SECTOR AND OTHER INDUSTRIES

TELECOM, MEDIA AND ENTERTAINMENT

HIGH TECH

DASHBOARDS AND REPORTS

ALERTS AND TRIGGERS

SATVIK TECHNOLOGY PLATFORM

( Hosted, multi- tenant platform integrated with 3rd party & client systems)

CUSTOMER/MARKETING ANALYTICS
CUSTOMER/MARKETING

Customer/Marketing Analytics provides a set of tools and predictive modeling solutions which help in increasing customer value and marketing returns

Required across verticals

QUESTIONS ADDRESSED Who are my target customers? Are the target customers cost sensitive ? How brand loyal are my customers? How to retain my customers? How to increase customer spending? Whom can I target to cross-sell the profitable items? Were the promotion programs successful? What is the ROI of each campaign? What is the likelyhood that a customer would accept the offer? What are the profiles of website visitors? How many follower are there in twitter?

SOLUTIONS Profitability Analysis Customer Segmentation Customer Life Time Value Customer ChurnAnalysis, Customer Retention Market Basket Analysis, RFM Analysis, Channel Optimization, Pricing Analytics Cross-sell Options Campaign Effectiveness Analysis, ROI Analysis Customer Segmentation and Offer optimization Web Sales and Traffic Rates Web Traffic Segmentation and Target Marketing

CUSTOMER/MARKETING ANALYTICS >>

CASE STUDY - CUSTOMER SEGMENTATION AND SCORING

CLIENT: ONE OF THE LARGEST INTERNATIONAL AUTOMOBILE BRAND BUSINESS ISSUE
The client was aware of high level of attrition and low engagement among their customers. The client wanted to gain greater understanding of the customers and wanted to develop targeted marketing programs for high potential/high value customers and also measure the effectiveness of their marketing efforts.

SOLUTION APPROACH

Three step approach Segmentation, Scoring and Campaign ROI analysis

SEGMENTATION STUDY

SCORING OF CUSTOMER BASE

ROI OF MARKETING CAMPAIGNS

Analysis Centric Design of Study

Problem approached through the customer service database of client available at service centers
Examine Group Behavior Develop a scoring model for Customers

Study to focus on individual customers Study avoids cases of warranty service

SOLUTION APPROACH

Identify Segments of Interest

Assign score to all customers

Clustering Customer Behavior Modeling and Assignment of Score Return on Investment (RoI) Analysis

Identify the customers that fall into specific segments of interest

Use of Advances Statistical Analysis to bring out tacit and explicit insights.

CASE STUDY - CUSTOMER SEGMENTATION AND SCORING

CUSTOMER SEGMENTATION STUDY DETAIL:
S1 The Natural Segmentation conducted through K-Means clustering showed 4 distinct segments. S1 Utility Customers S2 Premium and Loyal Customers S3 Premium and careful S4 Service shy The final cluster comprised of low value customers though the number of customers in that segment was high.
2500

S2 S3 S4

SOLUTION APPROACH

2000 Labor Revenue 1500 1000 500 0 -10% -500 Total Revenue Share 0% 10% 20% 30% 40% 50%

The two potential segments are of similar socio-economic profile as the ideal segment

One of the segments of interest had high share of hard attrition

The other segment of interest had very low levels of customer engagement

SAMPLE OUTPUT: LABOR REVENUE FROM 4 SEGMENTS

BUSINESS RECOMMENDATION

Behavioral change among the customers falling in the two groups of interest represented over 12 Million $ of revenue to be gained annually

Subsequently the client ensured that the customers falling into each segment were identified and measures were taken to increase their loyalty

CASE STUDY - CUSTOMER SEGMENTATION AND SCORING

CUSTOMER SCORING STUDY DETAIL:
The new customers were bucketed into the four identified segments using a scoring mechanism. The scores showed that a majority of customers fell in the 2 high potential segments of interest

SOLUTION APPROACH

ACTIVATION/USAGE ENHANCEMENT/LOYALTY MODELING

IDENTIFY THE CUSTOMERS WHO ARE MORE LIKELY TO ACTIVATE/MIGRATE TO HIGHER USAGE SEGMENT/INCREASE LOYALTY

Customer Score was developed through Discriminant Analysis The analysis helps in the assignment of customers into the 4 different groups based on likelihood ratio of key behavioral traits

BUSINESS RECOMMENDATION

CAMPAIGN DESIGN

The identification of customers falling into each of the 4 buckets was followed by development of campaigns to address the requirements of the high potential customers.
CHOOSE THE COMBINATION OF TEST AND CONTROL GROUPS, OFFERS, CAMPAIGN PERIOD AND MEASUREMENT PERIOD

The customers were then divided into test and control groups for campaign execution
ACTIVITY FLOW IN SCORING PHASE

CASE STUDY - CUSTOMER SEGMENTATION AND SCORING

CAMPAIGN MANAGEMENT STUDY DETAIL:
Targeted customer campaigns were administered to the test group, while standard customer engagement procedures were employed on the control group. The two groups were studied for hard attrition and number of visits for service. The associated value emerging from targeted marketing for every customer was then calculated

SOLUTION APPROACH

The study showed 75% reduction in customer attrition in the group that was identified as high attrition. The resulting visits showed an average of 4.5 visits per customer resulting in an average revenue increase of 128%.
AVG REVENUE

450 400 350 300 250 200 150 100 50 0 0 1 2 3

TIME

Targeted marketing campaigns administered to the low engagement group resulted in increase of average visits per customer to 5.3. The resulting revenue increase was calculated as 86%

Test
Control

BUSINESS RECOMMENDATION

The targeted marketing campaigns for the two segments resulted in an average of 238% RoI on Marketing efforts.

SAMPLE OUTPUT: AVERAGE REVENUE TEST AND CONTROL

CASE STUDY PROMOTION AND CAMPAIGN MANAGEMENT

CLIENT: A MNC BANK BASED IN EUROPE BUSINESS ISSUE
The Overall Marketing returns are a concern as the Client were getting diminishing / stagnant returns. The CRM requires a complete overhaul with focus on enhancing A. B. C. D. Analytics Capabilities Optimize Promotions Improve Operational Efficiency Maximize Marketing ROI

BUSINESS MARKET OVERVIEW

A small, but well developed Consumer credit market

Loans per capita* in Euro
UK Germany France Italy Spain Sweden Austria

Operating in a competitive market...

Total Loan Market = 32.4 bn. Euro*
Overdraft 13% FX-Loans 16% 60% Consumer Loans Auto Loans 11%

Highly over banked but growing

- Competitors gaining 15% of NI from Eastern European Operations - Increasing importance of Internet Banking (estm. 500k consumers 2011) - Loan Market segment growing 4% p.a.

3,868
2,709 1,555 1,096 1,244 4,923 4,275

3,360 Switzerland *excluding mortgages & overdrafts

CASE STUDY PROMOTION AND CAMPAIGN MANAGEMENT

SEGMENTATION AND PROFILING RESULTS CUSTOMER PORTFOLIO
160000

Total 134,000 active customers end Q1 2009 Decreasing Customer Portfolio in Q1 2009 Aging Customers, from 34 to 44 years, average 40 years Increase in Customer base that can be mailed to Decrease in profitability (3% NI Growth / Active Customer) Net income from employment is stable at 1.250 In average customers stay less than 3 years with us Only 25% of the Customers have more than one account, only 9,8% have more than 1 Product (except PPI) The median turnover is 5000 Euros

140000 120000 100000 80000 60000 40000 20000 0 2006 Cash Loan 2007 Auto Loan 2008 Retail Finance 2009

134.100

CUSTOMER SEGMENTS: (INCOME BASED)

7% 23% 10% Affluent 22% Upper Middle Middle

Lower Middle 38% Lower

CASE STUDY PROMOTION AND CAMPAIGN MANAGEMENT

STATISTICAL SOLUTION BUILDING AND MODELING MODEL SCOPE Satvik Team identified areas which required analytical improvements. Broad areas were

ANALYTICS R&D Decision Trees (Used in the Past)

Avg. Success Rate: Advantage (+): 1.0 % Simple Understandable Results

Response Modeling Behaviour Modeling Pricing Models Profitability Models Lifetime Value Models

Disadvantage (-): Best Results in Models With a Low Number of Variables

Logistic Regression (In Use)

Avg. Success Rate: 1.3 % Best Use in Models with a High Number of Variables Advantage (+):

BUSINESS OPPORTUNITIES These models were built, tested and validated. We implemented a series of models for:

Disadvantage (-): Hierarchical Influence of Variables is not Viewable

X-Sell Upsell Acquisition Mailing / Telesales Offer Optimization Retention etc.

Neural Network (Not in Use)

Avg. Success Rate: Advantage (+): 1.4 % Best Response Results in Industry

Disadvantage (-): Unknown

CASE STUDY PROMOTION AND CAMPAIGN MANAGEMENT

MODEL RESULTS (SNAP SHOT) X-SELL / UPSELL MODEL
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% 10% 20%

Model Based

Random

Cum. Resp. Rate

Top 60% of population capture 80% of responders Model based selection can enhance response (/conversion) significantly

30%

40%

50%

60%

70%

80%

90%

100%

Cum. Population (Active)

REACTIVATION MODEL
3.0% 2.5%

Model Based

Random

Resp. Rate

2.0% 1.5% 1.0% 0.5% 0.0%

Reactivation rate drops after 36 months of inactivity Reactivation Model improves reactivation by 173% Peaks from 0- 12 months < 1% reactivate after 48 months

# Inactive Months

CASE STUDY PROMOTION AND CAMPAIGN MANAGEMENT

MODEL IMPLEMENTATION DEVELOPED AND IMPLEMENTED ANALYTICAL MODELS
1. Calculate Base Propensity for Each Customer / Offer Pair
Response Rate Response Rate
2.5% 2.5%

2. Adjust Propensity with Product Attractiveness Factor

Response Rate
2.5%

3. Calculate Financial Estimation for All Response Deciles

2.0%

2.0%

2.0%

1.5%

1.5%

1.5%

+ Lift
1.0% 0.5% 1.0% 1.0%

- Degrade
0.5% 0.5%

10

10

10

Response Deciles

Response Deciles
Response Decile Gross Marketing Return Incremental Volume Cumulative Marketing Spend 1 2 3 4 5

Response Deciles
6 7 8 9 10

Monthly

Business Objective:

65 45 30 20 15 10 5 -0.1 -.02 -.03 100 90 80 65 60 55 50 45 40 25 10 20 30 40 50 60 70 80 90 100

Optimization of all CRM Mail Gross Marketing Campaigns: Return > 20

Response Decile Gross Marketing Return

1 2 65 45

3 4 5 6 30 20 15 10

7 8 9 10 5 -0.1 -.02 -.03

CASE STUDY PROMOTION AND CAMPAIGN MANAGEMENT

PROCESS IMPROVEMENT THROUGH CM SYSTEM & CARE DEPLOYED CAMPAIGN MANAGEMENT SYSTEM AND CAMPAIGN AND ANALYTICAL REPORTING ENGINE(CARE)
Developed Campaign Data Mart Deployed In house Campaign Management System Developed Reporting Framework and Automated Campaign Reporting

Campaign Set-up Data Hand-offs Analytics Based Targeting

Campaigns

CARE

CMS
Branch

DM

Campaign Reporting Data Mart

CRM Data Warehouse

TS

Campaign Management Data Mart

S2S

Host / Source Systems

Campaign Mgmt. Dialer TS & Inbound CMS Integration Automatic Script

CASE STUDY PROMOTION AND CAMPAIGN MANAGEMENT

INBOUND CAMPAIGN MANAGEMENT SCREEN SHOTS

INBOUND CAMPAIGN MANAGEMENT

INBOUND CAMPAIGN MANAGEMENT SCREEN SHOTS

CASE STUDY PROMOTION AND CAMPAIGN MANAGEMENT

INBOUND CAMPAIGN MANAGEMENT SCREEN SHOTS

2 Telesales Script that Marketing Pasted in Marketing Material

The Image Marketing Attached in Marketing Material 3 Customer Response

CASE STUDY PROMOTION AND CAMPAIGN MANAGEMENT

RESULTS OF MAILING CAMPAIGNS IN Q1-Q3 2010

BUSINESS BENEFIT
Incremental income of USD 30 Mill for three quarters with improved Marketing ROI of 23.54%

CASE STUDY PROMOTION AND CAMPAIGN MANAGEMENT

RESULTS OF TEKE SALES IN Q1-Q3 2010 X-SELL & UP SELL CAMPAIGNS OFFER WITH PRICING MODEL

BUSINESS BENEFIT
Tremendous improvement in Marketing ROI month on month for model implementation

X-SELL & UP SELL CAMPAIGNS OFFER WITHOUT PRICING MODEL

Almost doubling of Net conversion Rate month on Month

Incremental NI improved on an average 2.3 times

OPERATIONAL ANALYTICS >>

OPERATIONS ANALYTICS
OPERATIONS ANALYTICS

Operations Analytics helps in streamlining and optimizing the operations in both product and service organizations with the use of analytical techniques such as predictive modeling, forecasting and optimization SOLUTIONS Performance Score Cards Category Management and Pricing Optimization Arima, Markov Chain Modeling, Logistic regression Inventory Turns and stock levels Sales and Margin Rates Network Utilization and Zone Routing SKU Velocity Analysis Storage Utilization Shrinkage Analysis Store Layout Analysis Shelf Space Optimization

QUESTIONS ADDRESSED How can I compare the performance of multiple Dealers/Stores? How to maximize my Portfolio yield? What is my best Product Mix Vs Demand? How to balance the work load ? What shipment size would be best? How shall I schedule my shipment ? How to optimize my SKU portfolio? How do I best utilize my ware house? How to reduce my shrinkage? Where should I place the merchandize in the store? How to optimize the shelf space?

CASE STUDY - PRODUCT MIX FORECASTING FOR TELECOM MAJOR (1/3)

CLIENT: INTERNATIONAL TELECOM BRAND BUSINESS ISSUE
The client wanted to be able to: A) Predict / Forecast the demand of various Mobiles Devices Models in the Middle East region B) Optimally Allocate their various device models to dealers / stores C) Have a strategic allocation of New Models / Features of their product In order to maximize their sales and profitability

SOLUTION APPROACH

Mobile Phone Model level forecasting was used for predicting the demand.

Previous Sales

Location Classification

Problem approached using the POS data for the models

Model Classification

Seasonality

In addition other influencing factors such as the

Volume in No. of units

Sales Volume

economic grade of the area, the population and product classifiers such as the nascence of technology used and richness of features were used for the model.

TECHNIQUES AND TOOLS

500 450 400 350 300 250 200 0

FIGURE 1: MAJOR COMPONENTS OF ARIMA MODEL USED

Model 2 Sales Forecast Forecast UB Forecast LB

ARIMA (with repressors) Markov Chain modeling Logistic regression

10

20

30

40 Week

50

60

70

Figure 2: Overall forecast for key model in region

CASE STUDY - PRODUCT MIX FORECASTING FOR TELECOM MAJOR (2/3)

ANALYSIS FOR NEW TECHNOLOGY/FEATURE ADOPTION AMONG EXISTING MODEL BUYERS TEST STUDY :

The study used Markov Transition matrix to define the degree of shift of sales from existing models to new models.

The models were classified based on the features and technology where the value attached to a technology would erode with time thus shifting a new product to an established one.
45 40 35 30 25 20 15 10 5 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52
Week #

TEST RESULT

The study clearly showed that the tendency to adopt new products is higher in case of regions 2 and 3 which were larger urban clusters

The switching in these places clearly showed the strong adoption of new premium model from existing premium models over a period of 24 weeks on an average

Sales Volume (00)

Model 1

Model 2

New Model

Figure 3 : Markov Transition Matrix

CASE STUDY - PRODUCT MIX FORECASTING FOR TELECOM MAJOR (3/3)

NEW PRODUCT INTRODUCTION TEST STUDY :
The Test sample comprised of 12 months data and covered 10 distributors across 4 locations. The feature scores with models were mapped. A binary model was built with the following

Dealer profile variables New product feature scores Historical feature acceptances

Logistic Regression

Dealer Profile variables Historical New product acceptances New product feature scores

The output is a Dealer score with a probability of acceptance for a particular new product introduction Dealer New product acceptance Score

TEST RESULT

Dealers 4 and 8 located in Region 2 and 3 respectively showed high potential of new product sales. Based on the forecast over 42% of new product sales would be accounted for by these two dealers.
Figure 3 : Dealer acceptance modeling

CASE STUDY - STORE PERFORMANCE ANALYSIS

CLIENT: A LARGE GLOBAL RETAILER BUSINESS ISSUE: The client wanted to monitor store performance with respect to different departments and link the performance incentive of employees to the departmental and overall store performance APPROACH:

Customer Satisfaction was used as the indicator of store performance Customer surveys were conducted every month and data was collected regularly Based on the customer response a C-SAT score (% of customers with favorable opinion) was assigned for each department of each store The drivers for the customer satisfaction in each department were identified using Logistic Regression Focused and Targeted campaigns were conducted based on model inputs

BUSINESS IMPACT:

The dash board enabled the client monitor change in C-SAT from month to month across stores and departments The C-SAT score was used as one of the inputs to their performance management system

CASE STUDY - STORE PERFORMANCE ANALYSIS

Infrastructure

In-Store Facilities

Sales & Marketing

HR

After Sales

Store1
Satisfaction Score >= 90%

Store2

Store3

Store4

Store5

Store6
Sample data

75% <= Satisfaction Score < 90%

Satisfaction Score < 75%

CASE STUDY - STORE PERFORMANCE ANALYSIS

Infrastructure

In-Store Facilities

Sales & Marketing

HR

After Sales

Store1
Satisfaction Score >= 90%

Store2

Store3

Store4

Store5

Store6
Sample data

75% <= Satisfaction Score < 90%

Satisfaction Score < 75%

CASE STUDY - ACCEPTABLE PRICE RANGE STUDY

CLIENT: A LARGE ELECTRONICS RETAILER IN ASIA PACIFIC REGION BUSINESS ISSUE
The client had disparate data sets with various types of information (metrics) from multiple sources. In order to extract and report the key metrics for certain type of outlets, the existing process was extremely tedious, time consuming and manual process often prone to mistakes.

SOLUTION APPROACH
A tool was developed in MS SQL Server 2005, ASP.NET and.NET 2.0

SOLUTION BENEFITS
Accurate reports were available almost real time. Users were able to spend more time in interpreting data for taking effective decisions rather than collating data and making sure that the reports were correct

CASE STUDY - ACCEPTABLE PRICE RANGE STUDY

CLIENT: A LARGE ELECTRONICS RETAILER IN ASIA PACIFIC REGION BUSINESS ISSUE
The client had issued store loyalty cards to about 50,000 customers. However Loyalty card data, customer data, POS data and Survey data were stored in different databases and client was not able to conduct integrated analysis. Business objective was to integrate, reconcile and analyze the data and identify strengths and areas of improvement and develop action plan to address areas of improvement

SOLUTION APPROACH
The project was divided in to 2 steps Data Management and Loyalty card Analysis

DATA MANAGEMENT Customer data POS data

Data Integration Loyalty Card data Reconciliation Data Cleaning Master Table

Survey data

Exception and Discrepancy treatment

CASE STUDY - PRICE ELASTICITY MODELING

SAS : Data Step Flat files Input Data Data Import Survey Integration & Reconciliation Customer POS Card Integrated Table Master Table Data Cleaning Missing and Capping Using SAS E-Miner SAS : Data Step SAS : Procedures

STUDY DETAIL:
Data Integration and Reconciliation : Customer data, POS data, Loyalty card data and Transaction data were integrated and reconciled using customer number, POS number, Loyalty card number and by comparing with similar data from different months. Exception and discrepancies were identified and rules were created to resolve them. Data Cleaning : Variables are analyzed Univariate analysis, and Frequency and Crosstab analyses. variable capping and missing value treatment were carried out to deal with outliers and missing values respectively Business Impact : The master table not only provided integrated view of the portfolio but also enabled further analysis.

LOYALTY CARD ANALYSIS

Cluster analysis

Segmentation Key metrics generation Master Table Segment growth potential Customer spending analysis
Penetration, Activation and Spending

Segment based promotion plan Peer Comparison Targeting segments based on growth potential Customer based reward plans

ROI analysis

Buyer behavior

STUDY DETAIL:
Extensive analyses including segmentation, key metrics generation, customer spending analysis, region wise performance analysis were carried out using the data from the master table and inferences and recommendations were provided Business Impact : The analysis provided key insights about the card population including right segmentation, comparison with peers and ROI analysis. Based on our recommendations the client initiated model based spend enhancement campaigns targeting specific segments
Marketable Base # Contactable Reconciled population Final Available Population
156,745 126,783 61% 49% 156,745 141,678 61% 55%

Campaign improvement with cleaning Total Customer Base (Active)

BEFORE #
256,781

POST CLEANING % #
256,781

%
100%

100%

105,342

41%

130,345

51%

96,734

38%

115,673

45%

SATVIK PROPRIETARY AUTOMATION AND DASHBOARDS

Drill Down Charts & Maps

Planning & What if Scenarios

KPI Analysis

Interact , Analyze & Share

Simple & Attractive visuals of Complex Data

Flexible Design

DASHBOARDS & VISUALIZATIONS SATVIK DASHBOARDS GIVES

Interactive visualizations that provide consolidated views of key metrics & business performance Visual summary of business data, often at a high level, which can be further drilled down to each KPI level , which provide actionable insights to better decision making. Seamless Integration with analytics engine to allow real time analysis Data subseting and transportability to tools like excel, power point for further analysis and/or reporting

PREDICTIVE ANALYTICS DASH BOARD PROCESS WORK FLOW

SATVIK DASHBOARD S ARE BASED ON
Understanding the Analysis Objective to Analysis Inference mapping Definitive understanding of information access rights, reporting requirements Clear understanding of scope and limitation of interaction with the tool User requirements in terms of best visuals and minimum flexibility threshold

CONCEPT DEVELOPMENT & DATA INTEGRATION

DATA MODELLING & DESIGN

DASBOARD DEVELOPMENT & TESTING

DEPLOYMENT , OPERATION & MAINTAINANCE

DATA COLLECTION DATA CLEANSING DATA RESTRUCTURING

TECHNICAL SOLUTION FRAMEWORK LOGICAL ARCHITECTURE DATA MARTS

TECHNICAL SOLUTION FRAMEWORK LOGICAL ARCHITECTURE

INSTALLATION SUPPORT MAINTENANCE

SAMPLE PREDICTIVE ANLYTICS DASH BOARDS

Please find the link to the latest sales analytics demo with prediction module. http://202.88.238.226/rapidanalyse/ Home.aspx Login: admin Password: admin@123 Pereformance management Demo http://www.satvikinc.co.in/PPMDemo Login: admin Password: admin@123

SCREEN SHOTS OF SOLUTION WITH DASHBOARD INTERFACE

SOLUTION FEATURES
Analytics Reporting Dashboards

Sales analytics Summary, Inventory Summary, Campaign management summary etc

Predictive engine integration

Back end statistical tool integration, scoring and filtering

User interaction based

What-if Scenario analysis, Inventory/sales planners

RISK ANALYTICS >>

RISK ANALYTICS
RISK ANALYTICS

Risk Analytics is a set of analytical solutions which helps in prediction, early identification, and reduction of risk, and minimization of losses in various business activities SOLUTIONS Risk scoring Default Prediction Forecasting Risk based portfolio pricing LGD, PD Modeling Early Indicators of fraud Root Cause Analysis, Claims analysis Loss Analysis Self cure analysis Collection ROI Analysis Work-out analysis

QUESTIONS ADDRESSED What is the risk profile of my customers? Which customer is likely to default in future? What is the expected default in future? What is the fair value of my portfolio? Do I have adequate capital to cover the exposure? How to identify fraud early? How to reduce the instances of fraud? What is my total loss due to fraud? Which customers are likely to pay without contact? Which portfolio should be placed under recovery? Which is the best recovery method for a given customer?

CASE STUDY - AUTO LEASE APPLICATION SCORING

CLIENT: A MAJOR BFSI MULTI NATIONAL BUSINESS CASE:Client needed a new improved scoring process to score new Auto Loan applications that would:

More Accurately predict Accounts defaulting in Improve productivity by automatically approving lowest risk applicants and rejecting highest risk applicants

SOLUTION: A customized credit scorecard which predicts the probability that an applicant will become severely delinquent with in the next 12 months in their new applicant decision-making process DEFINITIONS: Goods : Less than 90 DPD within 1st year Bads : Greater than or equals 90 DPD within 1st year

METHOD

Logistic Regression Model used to predict default (good / bad). Additional information from Credit Bureau and internal data used. Extensive back testing and out of time testing . Best practices in terms of variables selected and best model selection method used.

CASE STUDY - AUTO LEASE APPLICATION SCORING

DEFAULT ANALYSIS / MODELING ATTRITION
ECONOMIC CAPITAL VS RISK GRADES

DEFAULT CURING

UTILIZATION

FEE INCOME

COST OF DECLINE / MAINTENANCE

The Portfolio was analyzed as above. Segments Customers with 1, 2, 3 and 4 or more Products All the above curves were used as inputs to the Credit Scoring Model

CASE STUDY - AUTO LEASE APPLICATION SCORING

IMPROVEMENTS (KEY POINTS)

This model was built on relatively newer data Additional Bureau & behavior information available

Statistically robust method used

RESULTS

Projected increase in approval volume ~ 27,500 application per year translating to $ 625K incremental sales

Significant improvement in Bad Rate Improved process and profitability

ANALYTICS ROADMAP >>

TOP PERFORMERS USE ANALYTICS

Organizations that put analytics into actions are more likely to substantially outperform their competitors than those driving decisions by intuition
Tendency to apply analytics to the following activities
Financial management and budgeting Operations and production Strategy and business development Sales and marketing Customer service Product research and development General management Risk management Customer experience management Brand or market management Workforce planning and allocation
Under performers Top performers

Median ROI for the projects that incorporated predictive technologies was 145%, compared with a median ROI of 89% for those projects that employed only traditional analytics.

Source : Analytics: The New Path to Value, a joint MIT Sloan Management review and IBM institute of business value study. Copyright Massachusetts Institute of Technology 2010

ARE YOU READY TO BOARD THE ANALYTICS TRAIN?

IF YOU MISS IT, YOU WILL REGRET

BENEFITS OF BUSINESS ANALYTICS

5.4x
Top Performers are more likely to use an analytic approach over intuition*
Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright Massachusetts Institute of Technology 2010.

Source: Survey of IT professionals and Business users by Computer world in 2009.

Source: CFO Study 2010.