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Advanced Analytics


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Advanced Analytics

  1. 1. Driving forAdvanced Analyticswith Joe Brandenburg<br />Operational <br />and <br />Market<br />Data Analytics <br />
  2. 2. The First Step in “Solving” is “Knowing” what the issues Are!!! Then Finding way to Improve<br />Long-Term<br />Profitability<br />Advanced Analytics Tracking and Targeting<br />Operational Tracking and Scoring<br />YOU ARE HERE<br />
  3. 3. Building the “Knowing”<br />Background and Capabilities<br />
  4. 4. Background<br />
  5. 5. Technical Capabilities<br />Programming SAS Mainframe and PC SAS for 12 years hands-on, JCL, JES2, Sync sort<br />Excel complex from Pivot tables to the Solver<br />MS Access, Word, PowerPoint<br />SQL Server, Oracle, Sybase 12 years<br />Database design, normalization, stored procedures, DTS, analysis services<br />Indexes, and optimization<br />
  6. 6. Ability to Sell the Right Mix of Support, Analytics, Research, and Analysis<br /><ul><li> Typical Tactic is to offer support and provide request fulfillment and then go beyond to show additional opportunity and insight through Analytics, Research and Analysis in a teaching and partnership fashion
  7. 7. Ability to speak to and work with all areas from spending time in and with all areas front to back in financial services organizations</li></li></ul><li>Analytic Capability Framework<br />Marketing<br />Financial<br /><ul><li>Customer and Product Profitability(CLV, Persistency, and Activity Based Costing)
  8. 8. Pricing (Risk, Market Based, Elasticity)
  9. 9. Acquisition Costs and Retention Costs
  10. 10. NPV, IRR, ROI, Payback Period
  11. 11. Underwriting performance and results tracking
  12. 12. Custom Research
  13. 13. Concept Tests (Quant or Qual)
  14. 14. Key Driver Analysis
  15. 15. Conjoint Analysis and Consumer Preference
  16. 16. (Product Design, Ad Copy, pricing, segmentation, forecasting)
  17. 17. Customer Satisfaction (Loyalty, Defection, Net Promoter)
  18. 18. Simulated Test Markets
  19. 19. Brand Equity and Brand Assessment
  20. 20. Uniqueness, Attractiveness, Relevance, Credibility
  21. 21. Promotion, Channel, Web Metrics</li></li></ul><li>Analytic and Research <br />Objectives (Examples)<br />Where is there opportunity for me to expand?<br />Increase P&C Sales by market expansion, channel development 25%<br />How Do I improve my Customer Satisfaction?<br />Improve Customer Satisfaction to 95%<br />When should I contact customers and what message to get them to stay?<br />Reduce Churn by 18%<br />What Products and Combinations do people want?<br />Develop product packages, up-sell and cross-sell tactics<br />
  22. 22. How can we get there?<br />Building a Strategy of Attack<br />
  23. 23. Building a Strategy of Attack<br />Phase I: Development of Baseline<br />Determine low hanging fruit: Easy low cost changes that will have big impact to the business<br />Phase II: Integration of Baseline, Outside Data and New Collection Methods<br />Phase III: Building tools to influence market expansion, automation, product design and pricing changes<br />Phase IV: Measure results of company efforts through reporting, dashboards and developed algorithms<br />
  24. 24. Phase I: Development of Baseline<br />Evaluating the Business<br />Development and Potential<br />
  25. 25. Phase I: Development of Baseline<br />Current Reporting Capability, Models, Data and SWOT<br />Operational Analytics Reviews<br />Underwriting, Accounting (Statutory and GAAP), Pricing, Reserving (Case and IBNR) <br />Development of automation and key profitability driver models<br />Evaluation of demographics and geo-demographic factors that impact retention, messaging and best customers (High Value/Low carrying cost) <br />Marketing Analytic Reviews<br />Competitor Pricing, Product Designs, Placement, and Promotion<br />Key Purchase Drivers of customers (price, deductible, ect)<br />Broker Network - What do we know? / What do we believe?<br />Product Expansion and Market Expansion Opportunities<br />Expansion through acquisition or evaluation<br />
  26. 26. Process Review and Documentation<br />Short-Term Automation<br />Manual Process<br />
  27. 27. Process Automation<br />
  28. 28. Example of Evaluating the Business Potentials<br />
  29. 29. Market Assessment and Potential<br />16<br />300<br />Million<br />People In The US<br />
  30. 30. Market Assessment and Potential<br />US Market<br />XXX<br />Million<br />Potential Buyers of Auto Insurance and Businesses buying PNC<br />Current States<br />Low Potential<br />Medium Potential<br />High Potential<br />
  31. 31. Market Penetration – Where We Have Won!<br />18<br />Different Penetration For Different Markets<br />
  32. 32. Phase II: Integration of Baseline and Outside Data<br />Building Reports <br />and <br />Business Intelligence<br />
  33. 33. Integrating Business Intelligence Tools into the Mix and Working with IT to develop new tracking tools and finding data<br />20<br />
  34. 34. Examples of Analytics, Reporting and Forecast<br />
  35. 35. Reporting and Tracking<br />Building Reporting and Outside Forces <br />(Dunn and Bradstreet, Equifax, Experian 4 digit Zip Code data, Retention History, Claims Patterns<br />Lifetime Value<br />Persistency<br />High Value Customers - Products<br />
  36. 36. Phase III: Building tools to influence market expansion, product design and pricing changes<br />Examples<br />
  37. 37. Underwriting Automation<br />Establish baseline of underwriting standards<br />If exists, take underwriting answers and compare to claims and persistency<br />Use of standardizations, skip patterns and question piping to populate underwriting database and decision engine<br />
  38. 38. Sphere <br />Of<br /> Influence<br />Customer<br />Independent Broker<br />Build Profiles<br />Build Profiles<br />Penetration<br />Potential<br />Fair Share<br />Claims experience<br />Net Promoter<br />Attitude / Awareness / Net Promoter<br />Receptivity<br />Carrier Reputation<br />Retention Renewal Tactics<br />Demographics<br />Socioeconomic<br />Perception<br />High Value Customer Evaluation<br />CRM and Quote Profiling Tools Online and Offline<br />
  39. 39. CRM Agent Recruitment Tracking Quoting tool tracking using Coremetrics, XML and SQL Server for both Online and Offline Tools <br />Manage Agents by Sales Stage(ARMS)<br />Future: Enhance Agent Profiling(ARMS)<br />Qualifying Does lead meet standards<br />Certified (Trained) Current on product<br />Committed Specific volume commitment to contract production<br />Engaged Merits our active support and enrollment into our programs<br />Reach<br />How big of a geographic circle does this agent reach?<br />Customers<br />General, Auto Targets, PNC Targets<br />Partnership<br />Differing depths measures of ‘engaged’; beyond ‘charter’ designation<br />Other<br />ARMS is a tool for lots of coordination opportunities. Links to D2C and Wholesalers<br />26<br />B2B Recruitment<br />Note: Initial ARMS “Status” designation has been established. This will “roll-up” in both Field Sales<br /> reporting and on the Operational “Dashboard”.<br />
  40. 40. Phase IV: Measure results of company efforts through reporting, dashboards and developed algorithms<br />
  41. 41. Results and Action Plan Follow-up<br />Campaign Segmentation<br />New Sales Development<br />Campaign Follow-up<br />Customer Retention Development<br />