In anticipation of her upcoming conference presentation, Driving the Omnichannel Experience with Predictive Analytics at Predictive Analytics World San Francisco, April 3-7, 2016, we asked Rebecca Pang, Senior Director, Channel Strategy & Analytics at CIBC, a few questions about her work in predictive analytics.
Q: In your work with predictive analytics, what behavior or outcome do your models predict?
A: With customer delivery and communication channels expanding, it is increasingly important for banks to engage the customers better and more efficiently by creating the kind of omni-channel experience that fit customers’ needs. We use predictive analytics (when combined with test and control) to predict client’s transaction behavior and financial implications by varying a number of levers to see which lever is most impactful.
Q: How does predictive analytics deliver value at your organization – what is one specific way in which it actively drives decisions or operations?
A: Making changes in a network of >1000 branches with thousands of frontline staff can be costly. Using predictive analytics, we are able to test ideas rapidly and efficiently, evaluate results, pin-point success drivers, revise initiatives and predict results on a wider rollout. We have been using predictive analytics and test and control on various channel and sales initiatives.
Q: Can you describe a quantitative result, such as the predictive lift of your model or the ROI of an analytics initiative?
A: In a particular pilot, we have achieved certain % of sales increase within a couple of months of conducting a number of sales and marketing levers. By segmenting what areas and what types of branches reacting or performing the best (say sales increase), we were able to estimate the impact would be for a wider rollout or how we should prioritize the roll out.
Q: What surprising discovery or insight have you unearthed in your data?
A: Often times we launch a pilot with an expectation that certain drivers (e.g., certain customer segments, certain branch characteristics, certain demographics factors) will react better than others based on common sense or conventional wisdom. Through a well-designed test, we were able to uncover surprising drivers (some are casual and some are likely not). With such discovery, we were able to refine the model objectively without relying on gut-feel.
Q: Sneak preview: Please tell us a take-away that you will provide during your talk at Predictive Analytics World.
A: The importance of developing the analytic muscle and test and control culture with internal information and online activity to understand behaviors and profiles of customers with a true 360 view (not only who they are, and what they do).
Don’t miss Rebecca’s conference presentation, Driving the Omnichannel Experience with Predictive Analytics on Monday, April 4, 2016 at 2:40 to 3:25 pm at Predictive Analytics World San Francisco. Click here to register to attend. USE CODE PATIMES16 for 15% off current prices (excludes workshops).
By: Eric Siegel, Founder, Predictive Analytics World
Eric Siegel is the founder of Predictive Analytics World (www.pawcon.com) — the leading cross-vendor conference series consisting of 10 annual events in New York, Chicago, San Francisco, Washington DC, London, and Berlin — and the author of the award-winning book, Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die – Revised and Updated Edition, (Wiley, 2016).