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Do you think that big data is useful only to large organizations and businesses? Not really! Big data is all around you and you rely on it every single day. Yes, you read that right – it is data analytics coming into play when you switch on your GPS to get to that new restaurant in town. Large amount of data from apps, reports and construction zone areas is put together systematically to ‘show you the way’.
Several multinational companies are using big data to make businesses and lives simpler, and Experian is a major player in this field. Further, the company is known for its risk management, fraud prevention and target marketing services, and data analysis has a huge role to play in all of it. Let’s find out more about the multiple ways in which Experian uses data science effectively to offer effective solutions across several industries.
Boost customer engagement and Return on Investment
Duke Energy, among the biggest electric power holding companies around the world, was looking towards maximizing the lifetime value of its customers. Consequently, through its research, the company figured that this could be achieved by offering custom-made solutions. However, that would mean having a deep understanding of its customers – their energy needs and preferences.
Duke Energy joined hands with Experian. A model was created based on the combination of data available with both of them about household energy consumption. Further, the model helped in predicting the energy usage and preference per household.
Furthermore, the data-backed recommendations by Experian helped Duke Energy in improving its direct marketing productivity related to its HVAC program. It was a major area of interest for most of its consumers, by approximately 84%. Apart from boosting its ROI, these insights also helped the company in improving its customer engagement by suggesting energy saving tips, thereby increasing consumer loyalty.
Did you know that the latest iPhone has the data processing capacity similar to that of NASA’s spaceship during its first moon landing mission? That should give you an idea of the amount of data you are holding in your palms right now. In fact, there is data all around us. Hence, the analysis of such huge amount of data is naturally going to be complex, requiring the help of experts.
The financial sector is among the largest industries producing an exponential amount of data every day. Consequently, the presence of unstructured data would definitely ask for its classification and analysis. Large volume of data, however, also increases the risk of data theft. Thankfully, data science helps in managing this risk.
Giants like eBay, JP Morgan Chase and Target have been victims of data breach in the past, emphasizing the need of a data risk management service. Further, even on an individual level, cases of credit card/debit card theft are not unheard of. Experian’s risk management solutions help prevent frauds. These solutions verify each customer application and transaction by authenticating the user’s identity with the help of effective verification tools.
The use of predictive scoring further helps financial giants in managing their risk portfolio.The Experian solutions identify the accounts that are at risk and those that have the greatest potential of recovery.
Cutting out unnecessary costs
Overstock.com learned it the hard way around that not all data is good data. The company was struggling with unnecessary costs and dissatisfied customers. It was a result of incomplete customer data. However, it managed to reduce its costs by about $200,000 soon after, all thanks to Experian’s Data Quality tools. Experian assisted the firm in verifying its customer addresses. And helped them rectifying mistakes in the checkout forms, which in turn improved customer satisfaction.
Experian has been assisting several industries like telecommunications, insurance, retail finance, banking and even small businesses with its decision analytics expertise. Credit analytics and decision support comprise of two of its major services. They offer solutions like customer management, debt recovery and customer acquisition, which are vital to every business.