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Index
Introduction
Advanced analytics
Many methods
Company
Technology:
OpenNN
Neural Designer
Some customers
Business cases:
Increasing sales of telemarketing campaigns in a bank
Reducing churn of customers in a telecommunications company
Nowadays, the amount of data created and
stored in organizations is increasing significantly.
But most of them are stuck at
lower-value descriptive analytics.
More sophisticated analysis can bring greater business value.
Introduction
These techniques are used to discover intricate relationships,
recognize complex patterns or predict current trends in your data.
Advanced analytics
Advanced analytics obtains useful insights that result in
smarter decisions and better business results.
What
Happened?
Why did it
Happen?
What will
Happen?
How can we make it
happen?
There are many techniques for advanced analytics
(k-nearest neighbours, decision trees, neural networks…).
Main methods
Neural networks is considered the
most powerful method for advanced analytics.
Artelnics is a company specialized in the development of
advanced analytics technology based on neural networks.
Company
Our team has more than 15 years of experience in applying
these methods to different sectors.
Artelnics develops the world-class neural networks library OpenNN.
OpenNN
OpenNN has been applied to many innovation projects:
We also develop Neural Designer, a professional tool for
advanced analytics.
Neural Designer
Neural Designer allows data scientists to build the
most powerful models in a simple way.
Some of our customers
Increasing sales of
telemarketing campaigns in a bank
BUSINESS CASE 1
A bank wants to predict which customers will buy a certain product,
by analyzing the data from previous campaigns.
The initial conversion rate is 1%.
Data set Value
Number of customers: 1 million
Number of features: 500
Total data: 500 million
Objectives
conversionfailure
Neural networks can analyze any number and type of data.
We designed a neural network that predicts the
probability of conversion for every potential customer.
Predictive model
We have multiplied the conversion rate by x2.5.
If we call all potential customers the conversion rate is 1%;
but selecting those customers with more than 50% of probability,
the conversion rate increases to 2.5%.
Conversion rates
initial final
1 % 2.5 %
The profit for the company increases in $400.000.
If the unit cost per contact is $5, and the unit profit per sale is $1.000,
we can maximize the total profit by calling the top 35% of customers.
Achieved profits
Reducing churn of customers in a
telecommunications company
BUSINESS CASE 2
Objectives
Data set Value
Number of customers: 3 million
Number of features: 600
Total data: 1.8 billion
A telco wants to predict which customers will leave the company,
in order to carry out a retention campaign and prevent churn.
The churn rate is 4%.
loyal
churn
We conduct exhaustive tests to corroborate that
our predictive model is reliable.
Binary classification tests
Test Value
Accuracy 76%
Sensitivity 77%
Specificity 75%
The model is predicting churn with
more than 75%of quality for all tests.
Cumulative gain
Contacting 25%of the clients
we approach 75%of those who are going to leave the company.
Now we simulate the performance of a retention campaign.
The next step is to examine the most influential variables
for each customer, in order to make personalized offers.
Individual prescriptions
We need to offer this customer a discount on international calls.
international calls charge
total charge
data signal
artelnics.com
Artificial Intelligence Techniques, SL
Carretera de Madrid 13
37900 Santa Marta de Tormes
Salamanca (Spain)
Telephone: +34 923 133 612 Ext.13
E-mail: artelnics@artelnics.com
Supported by

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Advanced analytics techniques and business cases

  • 1.
  • 2. Index Introduction Advanced analytics Many methods Company Technology: OpenNN Neural Designer Some customers Business cases: Increasing sales of telemarketing campaigns in a bank Reducing churn of customers in a telecommunications company
  • 3. Nowadays, the amount of data created and stored in organizations is increasing significantly. But most of them are stuck at lower-value descriptive analytics. More sophisticated analysis can bring greater business value. Introduction
  • 4. These techniques are used to discover intricate relationships, recognize complex patterns or predict current trends in your data. Advanced analytics Advanced analytics obtains useful insights that result in smarter decisions and better business results. What Happened? Why did it Happen? What will Happen? How can we make it happen?
  • 5. There are many techniques for advanced analytics (k-nearest neighbours, decision trees, neural networks…). Main methods Neural networks is considered the most powerful method for advanced analytics.
  • 6. Artelnics is a company specialized in the development of advanced analytics technology based on neural networks. Company Our team has more than 15 years of experience in applying these methods to different sectors.
  • 7. Artelnics develops the world-class neural networks library OpenNN. OpenNN OpenNN has been applied to many innovation projects:
  • 8. We also develop Neural Designer, a professional tool for advanced analytics. Neural Designer Neural Designer allows data scientists to build the most powerful models in a simple way.
  • 9. Some of our customers
  • 10. Increasing sales of telemarketing campaigns in a bank BUSINESS CASE 1
  • 11. A bank wants to predict which customers will buy a certain product, by analyzing the data from previous campaigns. The initial conversion rate is 1%. Data set Value Number of customers: 1 million Number of features: 500 Total data: 500 million Objectives conversionfailure
  • 12. Neural networks can analyze any number and type of data. We designed a neural network that predicts the probability of conversion for every potential customer. Predictive model
  • 13. We have multiplied the conversion rate by x2.5. If we call all potential customers the conversion rate is 1%; but selecting those customers with more than 50% of probability, the conversion rate increases to 2.5%. Conversion rates initial final 1 % 2.5 %
  • 14. The profit for the company increases in $400.000. If the unit cost per contact is $5, and the unit profit per sale is $1.000, we can maximize the total profit by calling the top 35% of customers. Achieved profits
  • 15. Reducing churn of customers in a telecommunications company BUSINESS CASE 2
  • 16. Objectives Data set Value Number of customers: 3 million Number of features: 600 Total data: 1.8 billion A telco wants to predict which customers will leave the company, in order to carry out a retention campaign and prevent churn. The churn rate is 4%. loyal churn
  • 17. We conduct exhaustive tests to corroborate that our predictive model is reliable. Binary classification tests Test Value Accuracy 76% Sensitivity 77% Specificity 75% The model is predicting churn with more than 75%of quality for all tests.
  • 18. Cumulative gain Contacting 25%of the clients we approach 75%of those who are going to leave the company. Now we simulate the performance of a retention campaign.
  • 19. The next step is to examine the most influential variables for each customer, in order to make personalized offers. Individual prescriptions We need to offer this customer a discount on international calls. international calls charge total charge data signal
  • 20. artelnics.com Artificial Intelligence Techniques, SL Carretera de Madrid 13 37900 Santa Marta de Tormes Salamanca (Spain) Telephone: +34 923 133 612 Ext.13 E-mail: artelnics@artelnics.com Supported by