Business Intelligence Best Practice Summit: Introduction to Choice Modelling

PREDICTIVE CUSTOMER ANALYTICSMike McGee | General Manager | Managility

FOUNDATIONS

Professor

Daniel McFadden

2000 Nobel Prize Winner

Berkeley, MIT, University

of Southern California

Focus Area: Discrete

Choice Theory

Professor

Daniel Kahneman

2002 Nobel Prize Winner

Princeton, Berkeley

Focus Areas:

Behavioural Economics,

Hedonic

Philosophy

Can we really

predict

customer

behaviour?

What are those choices worth?

Predictive Customer Analytics (PCA)Beneath the Surface

Benefits & Power of PCASimulation can test the demand for a number of attributes, such as:

product features, pricing and packaging

Benefits & Power of PCAUnderstand the value attributed by key customer segments

Benefits & Power of PCAUnderstand the price elasticity and demand curve

for your product or services

Benefits & Power of PCAAssess the customer’s ‘Willingness-to-Pay’

for product features

Benefits & Power of PCAPredict the shifts in market shares

Benefits & Power of PCAUnderstand the true value of your brand