The business challenge
Many organisations have now developed excellent databases, with predictive models deployed through efficient decisioning software.
Most also have the capability to produce fast and detailed reporting that help management to monitor targets. But even those that regularly refine and implement challenger strategy trees cannot be sure what opportunities are being missed or how far they are away from the optimal solution.
That’s because in reality, unless the outcome of every possible decision is known, how can an organisation be sure the best strategy has been implemented? More importantly, how much is the decision costing, in terms of lost potential profit and opportunity?
Optimisation offers a simple solution to this previously highly complex challenge. It uses proprietary mathematical algorithms to design a decision strategy which incorporates business goals and constraints to achieve the optimal outcome.
Optimisation can be used across the customer lifecycle:
- Marketing - pick the best action for each customer from multiple offers and channels to in line with compliance and contact policies
- Origination – increase profitability by taking on the optimal set of customers to fit within operational and business constraints
- Pricing – maximise customer value and RARORAC by choosing the right terms, limits and price across the credit spectrum
- Customer management and line management – increase the value of the existing portfolio through optimal management strategies
- Collections and recoveries – maximise the impact of current resource capability by optimising decision trees
The answer
Optimisation from Experian can be delivered in the way that achieves the best return for every organisation.
Tree based deployment
The benefits of optimisation are significant and well documented, however some organisations face challenges in deploying a standalone optimisation system.
To tackle this challenge Experian has developed a system that can not only assess how much opportunity is being missed, but can design an optimised strategy tree for seamless and rapid deployment into existing tree-based decisioning systems.
The system uses proprietary mathematical algorithms to design an optimised decision strategy tree. Deployment of optimised strategies using trees removes many implementation obstacles faced by organisations, and opens up a wealth of opportunity to deploy optimisation across the business.
Individual level Optimisation
Optimisation can use a mathematical process to assign the best offer or action for each individual customer. The graphical user interface allows marketing managers or business analysts to quickly create new optimisation scenarios without any programming, modelling or statistical experience so that strategies can be adapted when resources change or plans are modified.
Optimisation enables organisations to:
- Maximise the impact of decision strategies – align decisions with business goals and practices, enabling decision strategies to be set that achieve business targets
- Rapid time to value – ROI quickly following deployment
- Get more from existing resources with seamless integration with the existing systems