The Benefits and Many Uses of Predictive Intelligence Applications - And How To Use Them
"You can’t just say, Trust me, it’s a fine model,’" agrees Dreyfus Executive Vice President Prasanna Dhore in New York City, who combined his division’s analytics team with sales and marketing to ensure that the results of modeling would get translated into action. "Your data mining or analytical group can be off on a tangent building wonderful models, but then nothing gets implemented."
Dhore’s group used predictive "linear and nonlinear models" from SAS to determine why asset redemptions (such as people pulling their money out of mutual funds) at the funds group were higher than industry standard levels. The group also used the models to predict when individual customers are likely to churn so that they can be targeted for special attention. Dhore credits the technology with helping reduce asset redemptions to around 7 percent of assets per year, well below the industry standard. "To a large extent that was because of the success of our data mining and predictive modeling," he explains. "The amount of data you can handle now makes it so easy." n
