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Database Intelligence
Database Intelligence
Some refer to it as data mining,
others know it as KDD (Knowledge Development in
a Database), and some use the term CRM (Customer
Relationship Management). At Decision Analyst, we
simply talk about Database Intelligence; that is,
using every tool available to maximize and exploit
the information and profit potential of marketing
databases.
For companies engaged in direct
marketing, their customer database is their greatest
asset. Exploiting this asset by maximizing knowledge
about database customers (buying habits, perceptions,
attitudes, motivations, future purchase intent)
and, by extension, about other potential customers-and
putting that knowledge in the most actionable form-is
what Database Intelligence is all about.
Data Cleansing and Data Integrity
Database quality has a direct impact on how much (even whether or not!)
intelligence can be mined from a database; our own experience indicates that
the typical customer database, even after list cleansing, is composed of
20%-55% worthless records (duplicates, records with erroneous contact
information, bad addresses, missing data, etc.). This means direct marketing
costs for most companies could be reduced (by up to half) just by better
cleaning of the database.
Database Intelligence at Decision
Analyst begins with making sure the database is as good as it possibly can be.
Using a stochastic partitioning model, the Database Analytic Services group
assesses and ranks the viability of each record in the database. Marketing efforts
can then be concentrated on the records with the highest viability, while clean-up
and restoration efforts can be focused on the records with lower viability.
At the same time, we can help you develop a plan to keep the new, improved database
at a uniformly high level of accuracy as new records are added.
Data Warehouse Design/Architecture
The potential value of a database can be greatly enhanced
by the design of the data warehouse. Massive volumes of data are of little value
if they cannot be accessed quickly and manipulated in meaningful ways without
backbreaking (or mindbreaking) effort. That’s why, at Decision Analyst,
data warehouse design and architecture are part of
database intelligence. With experience on databases
ranging in size to several terabytes, Decision Analyst's Database Analytic Services
group has the experience and know-how to design a data warehouse of
virtually any size and complexity.
Exploratory Analysis of Data
Intelligent data mining depends
on knowing the behavior of the variables that make
up each record in the database. That is, the parameters
of the variables (summary statistics such as min,
max, mean, standard deviation, etc.), what each
variable represents in the real world, which variables
are potentially useful dependent variables, and
how variables in the database relate to each other
and (especially) to potential dependent variables.
Univariate, bivariate, and multivariate techniques-both
tabular and graphical, are the primary techniques
here.
Propensity Models And Lead Selection
Once the data are well understood,
modeling can begin. If there is a stable and robust
response variable present, then a logistic regression
or other kind of model is a logical next step, ranking
the leads based on likelihood of being in the “responder”
(or “payor,” or “persistor,”
etc.) category, or assigning a loyalty or lifetime
value score to each record. Depending on the modeling
objective and the available response variable(s),
modeling efforts may result in:
-
Response models
-
Revenue/Profit models
-
Retention/Loyalty/Persistency models
-
Lifetime value models
In the case where a marketing history is not available for
a given product or product class, latent variable analysis,
(an extension of exploratory analysis) can also be used to generate a propensity
model.
Segmentation
One of the fundamental and time-honored
ways of targeting distinct portions of the marketplace
is through segmentation. Segmentations can range
from the very simple, such as divisions of the market
by age or income, to the very complex segmentations
built on many variables and optimized for the number
of segments. The Database Analytic Services group
at Decision Analyst is ready and equipped to fill
your database segmentation needs, whether they be
strategic or tactical.
Reporting
Information in a database is
of no value if it cannot be extracted and reported
promptly and accurately. Decision Analyst has developed
powerful multilevel reporting software with graphics
and drill-down capabilities to race important information
to decision makers.
Other Database Analytics Services include the:
Additional Resources from
Decision Analyst
If you would like more information
on Database Analytic Services, please contact Rod Carver
by email
or call 1.800.ANALYSIS (262.5974).
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