Big-Data and Data Analytics have made a significant contribution to serve the risk management requirements of organizations.
Here are 6 ways data can help companies stay safe!
1. Identifying Churn and Reducing Customer Defection: Using Big Data, Predictive Analytics can look into historical data to identify potential churn.
American Express uses historical transactions and 115 variables to forecast potential churn. They believe that now they can identify 24% of accounts (in the Australian Market) that will close within next four months.
T-MOBILE has integrated data gathering tools across its IT systems to combine customer transactions and data interactions to predict customer fluctuations. They claim to have cut customer defections by half in a single quarter by leveraging transaction data from internal CRM and Billing systems and (big) data on social media usage.
"Big Data has the ability to illuminate trends and patterns that would have otherwise been invisible, which then creates questions and inquiries into how the business works. Ultimately, the outcome of such pattern identification is often the ability to predict when a certain business-contextual event is about to happen, and then to adjust accordingly in an automated fashion. - Daniel Miessler, Specialist, Creative problem-solving."