Alliance Data Systems is a marketing services company formed in 1996 through the merger of credit card processing units. It has several subsidiaries and generates revenue through retail credit cards, financial services, and customer relationship management. The company uses customer data and analytics to design direct marketing campaigns and promotions. It implemented regression analysis to predict future sales based on past customer spending amounts. This allows the targeting of customers most likely to respond to offers. Key learnings included defining objectives, mapping stakeholders, and creating a strategic implementation plan.

1. Business Statistics
with R
Group-1
Akshita Manwati
Tabassum Irfan
Harender Singh
Indrajeet Hulyalkar
Mayank Kumar
PRN008
PRN073
PRN099
PRN114
PRN100

2. 01
Company
Introduction

3. Formed in Dec. 1996 merger of two entities: J.C. Penny’s credit card processing unit
and Limited’s credit card operation bank, World Financial Network National Bank.
LoyaltyOne, Blackstone Group,
Aspen marketing services, Epsilon-
ValueClick and Lon Operations Inc
SUBSIDIARIES
Retail Credit Card & financial services
(Transaction processing, credit and
marketing services in CRM)
CUSTOMER PROFILE
Revenue US$ 7.719 Bn
Operating income US$ 1.646 Bn
Net income US$ 789 Mn
Total assets US$ 30.685 Bn
Total equity US$ 1.855 Bn
Know more. Sell more.
(by using customer insights, advanced
analytics, and broad-reaching
innovative capabilities)
VALUES

4. Problem Description - ADS
To determine the inter-
dependency of the variables
To predict the sales based on
sample data
To use the simple regression
method to obtain the result
Combining amount of purchase and
amt spent at related stores to
determine the future sales

5. Develop
An understanding
of the customer
experience
The capturing of
customer insight beyond
call recording
Act
Expand
on customer
insights to improve
relationships and
drive revenue
Business Need - ADS

6. Methods
Practised in
Company
02

7. Implementation of the Regression model - ADS
Motive
The amount of money
spent by those who
make a purchase
Predictions of
regression model
who receive a promotion,
while others predict the
likelihood of purchase
for individuals who do
not receive a promotion.
Data Collection
With its database
containing information
on the spending habits
for 100 Mn+ consumers
ADS designs direct mail
campaigns and
promotions
Marketing services
ADS Implemented has been
done as a 4-step process.
The flow for the steps is …

8. Correlation Between the Responsiveness of the
Customer and Direct Market Campaign
The campaign's impact,
ADS analysts selected a
sample from the
consumer database.
Sample data on purchases
made by consumers
responding to the campaign, as
well as a variety of consumer
specific variables thought to be
useful in predicting sales, were
collected.
Analysts at Alliance Data
Systems discuss the use of
a regression model to
forecast sales for a direct
marketing campaign
01
FORECAST COLLECTION GOALS & STRATEGY
02 03

9. Created a regression formulae
ADS analysts developed an estimated regression equation relating the amount
of purchase to the amount spent at related stores:
Y = 26.7 + 0.00205x
Where , y =amount of purchase amount x= spent at
related stores
Using this equation, we could predict that someone spending $10,000 over
the past 39 months at related stores would spend $47.20

10. Epsilon detected
unauthorized access to
its email database
Flexibility to purchase the
right compute resources
that they need for each
workload
Technical Advancement
Alliance Data Systems can
seamlessly add resources to
support month-end reporting
and heavy forecasting and
planning seasons
FLEXIBILITY
CYBERSECURITY
MOVING TO CLOUD

11. Learnings and
group’s
suggestions
03

12. Define very clearly your objectives for
implementing learning analytics and the
changes you want to achieve
Key Learnings
Mapping context & it involves:
The context—The people, institutions, and
processes that may help or hinder change
The evidence— convince sceptics of the
need for change, achieved via data collection
Links—People and processes that give you
access to influential connections
Once we know who benefits the most from
the use of analysis, consider which
stakeholders hold the most influence. These
could be individuals or a group of stakeholders
A strategic plan helps ensure that your
implementation happens predictably and in a
controlled manner. Without a strategy, your
implementation is much more likely to go off
the rails.
1
2
3
4

13. Similar Company in India
Market Value: $18 Bn
Web-based Commerce
Payments: Credit/e-Wallet
PhonePe is an Indian digital payments and financial
services company headquartered in Bangalore, India.
Founded in Dec. 2015
 The PhonePe app is available in over 11 Indian
languages (Helps for data collection in our case
study).
 Using PhonePe, users can send and receive
money, recharge mobile, DTH, data cards, make
utility payments, pay at shops, invest in tax
saving funds, liquid Funds, buy insurance and
mutual funds and gold (Services offered).
 Offline and online merchant outlets across 500
cities in India covering food, travel, groceries,
medicines, movie tickets etc.

14. Get data on
spending habits
of the company
- Give related
coupons &
discounts
Collect sample
data from
customer - Do
direct marketing
(personalized
Offers etc.)
To target the
customers directly
- Give them credit
limits
Helped in identifying
the +ve & -ve
outcomes which can
be used in correcting
ive experiences.
M
R
G
C
Methods Practiced & adopted - Paytm
GET DATA
COLLECT
REGRESSION
ANALYSIS
DIRECT CALL/E-
MAILS

15. Connect with us in case of any doubt.
Thanks
akshita.manwati@siom.in
tabassum.irfan@siom.in
harender.singh@siom.in
indrajeet.hulyalkar@siom.in
mayank.kumar@siom.in