Predictive Analytics Times
Predictive Analytics Times
EXCLUSIVE HIGHLIGHTS
Dr. Data Show Video: How Can You Trust AI?
 Watch the second episode of The...
Three Common Mistakes That Can Derail Your Team’s Predictive Analytics Efforts
  Originally published by Harvard Business...
Artificial Intelligence: Are We Effectively Assessing Its Business Value?
 As most data science practitioners know,...
Dr. Data Show Video: Why Machine Learning Is the Coolest Science
 Watch the premiere episode of The...
SHARE THIS:

3 years ago
Good Predictions != Good Decisions

 

A Fateful Tale

Ted is having a rough week at work. As a call-center employee, his main focus is on customer retention and offering promotions to his company’s current subscribers. For some reason, his numbers are horrible this week. Not only are customers rejecting his promotions, they’re actually canceling their subscriptions entirely! It’s only Wednesday, and he’s had as many customers leave in the past three days as in the previous month. He’s nervous as he enters the conference room with his coworkers for their mid-week meeting.

Ted’s nerves start to subside as he realizes that others are in the same predicament. Customers are churning left and right, and the manager is visibly upset. As it turns out, their abysmal numbers are the result of a change to their weekly call lists based on a mandate from the corporate office; some analysts had built a model that was supposed to provide the “best” customers to target with their phone calls. These analysts were obviously wrong. “How can they know how customers are going to react when they’ve never even talked to one?” Ted murmurs.

To view this content
Login OR subscribe for free

Already receive the Predictive Analytics Times emails?
As of January 2014, the Predictive Analytics Times now requires legacy email subscribers to upgrade their subscription - one time only - in order to attain a password-protected login and gain complete access.

Click here to complete this one-time subscription upgrade

  

Existing Users Log In
   
New User Registration
*Required field

Comments are closed.