EXL’s analytics services help clients achieve better results and make more effective use of their internal capital by leveraging our financial services experience, world-class analytics capabilities and cost-effective global analytics delivery model.
Companies accumulate huge amounts of data on a day-to-day basis which store encrypted information. Analytics helps unravel that locked information and use it to the advantage of the company. It enables companies to make more effective decisions while addressing their business challenges. Application of analytics can help companies in the areas and marketing campaigns, customer behaviors, risk management, operations, financial and investment management.
Our Decision Analytics practice provides custom-made data-driven solutions to a variety of business applications. Apart from statistical modeling and data analysis, the focus is also on understanding business challenges and delivering action oriented solutions. The key innovation is a powerful merger of statistical data mining and a consultative approach. While data analytics help organizations reap the benefits from analysis of the stored information, its application through a consultative approach can assist businesses with complex risk minimization methods, advanced marketing strategies, internal cost analysis, inventory management and other logistic issues within the organization. Some other applications include optimizing supply chain management, tracking key performance indicators, uncovering hidden sales opportunities and determining runaway costs. For each business sector, Decision Analytics services at EXL defines profitable, customer-centered strategies and delivers innovative solutions that drive value for each business.EXL analytics advantage
EXL's service offerings in decision analytics
|Financial services experience |
- Our clients include more than half of the top ten financial institutions
- We have direct and relevant experience in marketing, risk and operational analytics (i.e., building/outsourcing analytics capabilities and applying advanced analytics to business problems)
|World-class analytics capabilities |
- Strong talent pool enabled by well-developed hiring, training and performance management processes over the last eight years
- Proprietary analytical methodology, Microanalytix, and tools & techniques such as population tree specifically applicable to financial service industry
- Successful application of cutting-edge analytical techniques such as collaborative filtering and non-parametric modeling (also known as neural nets) to business problems
- Industry and academic recognition through awards (KDD cup)
|Cost-effective dual-shore model |
- Integrated delivery resources across U.S., Singapore and India offices offering flexible pricing structure
|Nimble and scalable partner |
- Ability to ramp up and down at short notice
- Financially stable; no debt on balance sheet
ApproachThe Decision Analytics process at EXL consists of three stages
|Marketing & Customer Analytics |
Companies serving customers continually face the challenge of acquiring new profitable customer and retaining existing ones. Larger companies generate and now collect large amounts of proprietary data as part of their transactions with customers, which can be a valuable competitive asset.
EXL’s Marketing and Customer Analytics solutions offer best-of-breed global analytics support for data mining, management and analytics on an ongoing basis to assist operating decision-making in the marketing and customer management functions. EXL has used marketing analytics and its data management expertise with our clients while solving problems that require an understanding of customer behavior.We have addressed the following concern areas of our clients Improving marketing efficiency and ROI from campaign strategies (e.g., direct mail campaigns)
Identifying potential cross-selling opportunities
- EXL leverages its experience with campaign design, management, execution and data analysis. It has improved the profitability of Direct Mail Acquisition Campaigns for Small Business Cards by analyzing historical campaign data.
Developing membership rewards strategy
- EXL has expertise in cross-sell and up-sell strategy and implementation. It has identified potential businesses with the consumer banking population and developed a targeted cross-sell acquisition strategy by leveraging internal and external customer data.
Optimizing marketing investments across branding, acquisition and loyalty to maximize overall returns
- EXL has experience in developing membership rewards strategy. It has helped a large credit card issuer identify segments by profitability and opportunities along the entire rewards value chain, identifying ~$452 million of incremental NPV potential.
- EXL has extensive knowledge in market optimization modeling and analysis
|Risk Management Analytics |
Larger companies generate and collect large amounts of proprietary data as part of their transactions with customers, which can be a valuable competitive asset. In industries where the inherent nature of the business involves risk - success and profitability depend on the ability to manage and minimize that risk. Such companies face the challenges of increasing profits by retaining low risk customers and at the same time reducing losses by detecting fraud, predicting defaults and bankruptcy. For example, the insurance industry – whether health, auto, life or home - can develop models that predict expected claim amount or probability for claims from past insurance data containing claims information.
EXL Risk Management Analytics practice helps companies make better decisions by executing the analyses of risks in a timely, cost-effective manner with multiple iterations. At EXL, we work with clients across various industries to perform risk analytics using their high volume of customer data to improve their bottom line. We leverage customer information combined with our expertise in data mining, analysis and predictive modeling to lead our clients to make better informed decisions and better manage their risk.
EXL has helped companies gain competitive advantage through our extensive expertise in using analytics to help manage risk at a portfolio level for specific products. EXL has helped companies with their challenges on the following frontsDeveloping a credit policy for a new card product
Increasing customer profitability
- EXL created a credit policy formulation for a Top 5 US credit card issuer and has further expertise in the monitoring and management of application approval and credit line decisions and policies
Identifying high risk accounts
- EXL, as it did for a top 10 US credit card issuer, can optimize customer line assignments to increase customer profitability, utilizing their extensive experience in retail and commercial credit risk modeling
- EXL has the fraud detection capabilities including fraud monitoring and fraud system augmentation services to identify high risk accounts. For a leading consumer credit card, using its customer transaction information, EXL provided a 300% + lift over Falcon Score in identifying application fraud within first three transactions
|Operations Analytics |
Global corporations serve customers around the clock across several geographies. These interactions with customers generate substantial amounts of data, providing a source of insightful information to serve customers better while managing operations efficiently. The challenge is to find cost-effective analysts to efficiently apply data mining and analytics techniques that can have meaningful impact on customer service operations.
EXL has extensive expertise in using analytics to help design effective operations service strategies and includes IVR analytics, providing effective demand forecasting and demand management, productivity and performance, customer satisfaction analysis, collections efficiency and placement.EXL has helped its clients with the following challengesProviding more customer friendly solutions to IVR
Improving capacity planning and demand management
- EXL helps clients analyze IVR data to identify user segments based on usage preference and redesign the IVR strategy accordingly
- As EXL has done with a leading UK-based insurance company, it can provide effective demand forecasting and demand management to reduce forecast variances
|Finance & Investment Analytics |
In a rapidly evolving business environment, the standards of regulatory scrutiny and corporate governance management are consistently getting raised. Today, management is faced with the challenge of business execution and activist Boards, and capital markets—where management performance and recommendations are hotly contested and received with instant and unforgiving feedback.
In such an environment, rigorous financial analytics is becoming an integral part of management's overall strategic and transactional decision making process.EXL’s domain expertise along with analytics tools and techniques help companies with the following challenges. Market-size estimation and competitive analysis
Identify attractiveness of products to a select group
- EXL’s Finance and Investment analytics capabilities and services include comprehensive competitive analyses (e.g., plotting the competitive landscape and identifying strategies of competitors). EXL also has experience in market sizing. For an internet-focused US PE Fund, EXL created a complex market sizing model which captures the hazy marketplace in a snapshot.
Target screening of companies suitable for investment
- EXL can provide an assessment of the industry through analysis of market size, growth rate, trends and risks as well as evaluate the target company through analysis of value chain, competitive landscape, key differentiators and value proposition and pricing of the product offerings
- As an example, EXL prepared an automated spreadsheet-based dashboard that selected telecom companies based in the Middle East that were suitable for investment
- In the 'design' stage, the objective is to understand the core business challenge and lay out an analytics solution. In this stage the amount of data and resources available are examined
- The 'develop' stage consists of gathering and managing available data. In many cases, data from external sources are incorporated to make more meaningful inferences. This is followed by advanced data analysis and modeling with the use of a wide range of analytic software (SAS, CART, MARS, JMP, R, SPSS, Excel, etc.). Modeling approaches such as classification and regression trees, multivariate linear regression and other advanced techniques are used in building each model. With some amount of manual intervention the models are fine-tuned and revalidated to improve performance. Improved performance leads to more reliable business decisions based on relationships within the data.
- In the 'deliver' stage, the learned models are employed and the results are interpreted to form coherent business rules that are implemented in a client environment. An important aspect of EXL’s Decision Analytics solution is that every stage is overlaid with a systematic quality assurance process to ensure the application of high methodological standards throughout the project design, development and delivery. Apart from overall validation the quality assurance, process at EXL ensures the use of analytic models that are grounded in sound statistical and data mining practices.