“Truth is a Pathless Land”

...but finding an effective solution to your business problem does not have to be. Business analytics landscape does actually appear so, with a myriad techniques and vendor tools in the market.

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  • Integrate data
  • Select and deploy appropriate analytics
  • Institutionalize processes

About this Blog

The Analytics Compass Blog is aimed at two types of readers:

  • individuals who want to build analytics expertise and 

  • small businesses who want to understand how analytics can help them improve their business performance. 

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Customer value management - Analytics is a must for customer loyalty

improving customer loyalty programs using analytics resized 600

There is a very subtle line separating the customer retention and customer loyalty activities that must be followed by a business. The distinction between the two was elegantly expressed by Francis Frei in her column:

How to use k-means clustering to simplify cost modeling: part 2 of 2

rapidminer gui select id for clusters

In part 1 of this series, we described how a small manufacturer of automotive parts is trying to develop cost models for 22 different product lines. Rather than develop an individual cost model for each of the products, we suggested the use of a cluster analysis technique to bunch several similar products together and work on a reduced set.

How to use k-means clustering to simplify cost modeling: part 1 of 2

cost modeling simplified cluster analysis data

We have dedicated several articles to discuss the application of cost modeling in business using predictive analytics. We now expand the business process of developing cost models for companies which have a multitude of products.

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