business intelligence best practice summit: introduction to choice modelling

11
PREDICTIVE CUSTOMER ANALYTICS Mike McGee | General Manager | Managility

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Introduction to Choice Modelling and Predictive Customer Analytics

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Page 1: Business Intelligence Best Practice Summit: Introduction to Choice Modelling

PREDICTIVE CUSTOMER ANALYTICSMike McGee | General Manager | Managility

Page 2: Business Intelligence Best Practice Summit: Introduction to Choice Modelling

FOUNDATIONS

Professor

Daniel McFadden

2000 Nobel Prize Winner

Berkeley, MIT, University

of Southern California

Focus Area: Discrete

Choice Theory

Professor

Daniel Kahneman

2002 Nobel Prize Winner

Princeton, Berkeley

Focus Areas:

Behavioural Economics,

Hedonic

Philosophy

Page 3: Business Intelligence Best Practice Summit: Introduction to Choice Modelling

Can we really

predict

customer

behaviour?

Page 4: Business Intelligence Best Practice Summit: Introduction to Choice Modelling

What are those choices worth?

Page 5: Business Intelligence Best Practice Summit: Introduction to Choice Modelling

Predictive Customer Analytics (PCA)Beneath the Surface

Page 6: Business Intelligence Best Practice Summit: Introduction to Choice Modelling

Benefits & Power of PCASimulation can test the demand for a number of attributes, such as:

product features, pricing and packaging

Page 7: Business Intelligence Best Practice Summit: Introduction to Choice Modelling

Benefits & Power of PCAUnderstand the value attributed by key customer segments

Page 8: Business Intelligence Best Practice Summit: Introduction to Choice Modelling

Benefits & Power of PCAUnderstand the price elasticity and demand curve

for your product or services

Page 9: Business Intelligence Best Practice Summit: Introduction to Choice Modelling

Benefits & Power of PCAAssess the customer’s ‘Willingness-to-Pay’

for product features

Page 10: Business Intelligence Best Practice Summit: Introduction to Choice Modelling

Benefits & Power of PCAPredict the shifts in market shares

Page 11: Business Intelligence Best Practice Summit: Introduction to Choice Modelling

Benefits & Power of PCAUnderstand the true value of your brand