Dr. Gary Rhoads, Loyalty Expert and Co-Founder of Allegiance, gave a good presentation today during the online Engage eSummit, in which he offered the following “Five Easy Steps to Predictive Analytics: A Top Down Business Outcome Approach”:
Step 1: Review business outcomes or key goals with leading indictators. Understand their relational patterns or trends. When you focus on business outcomes, the reason we gather data is because we want to know how it influences certain issues, as well as what kinds of things go on that increase customer loyalty and purchases. Gather data to try and predict that.
Step 2: Find the subgroup (e.g. location, gender, or job group) that is causing the dip or rise in leading indictors and hence ROI. Predictive Analytics will tell you which group it’s dipping in. When a company has problems and is experiencing a drop, it’s not the whole company, it’s usually a subgroup.
Step 3: Review top box, swing and bottom box scores–Overall get a feel of the landscape.
Step 4: Review the voice of the customer/employee for deep insights. Compare “Best in Class Groups” with “Worst in Class.” Find best practices and barriers.
Step 5: Review predictive analytics–the drivers or “hot items” that impact key goals and indictators (e.g., engagement, NPS, productivity) positive or negative.
Kimberly Carroll, MarCom Manager, Allegiance
