Members of the Premier Business Experts’ teams took many doctoral level statistics classes and taught advanced statistical analysis courses at multiple universities. While teaching such courses, these members also published many refereed academic articles dealing with analysis issues. Just as importantly, they built the artificial intelligence, credit scoring, direct mail, distribution efficiency, fuzzy logic, geoclustering, neural network, prospecting, sales forecasting, spill-and-recapture, and other systems for Fortune 500 corporations. Some of these yielded “canned software” products, sold by companies like A. C. Nielsen, R. R. Donnelley’s Metromail, and Fair Isaac, with the latter being the case due to a joint venture between Fair Isaac and Metromail.
Premier Business Experts’ Statistical Division Enhances Stakeholder Wealth!
While a specialty of Premier Business Experts is to help mom-and-pop establishments become companies of significant size, the professionals at Premier Business Experts have (using univariate, multivariate, parametric and nonparametric techniques) determined how more than 50 million worldwide purchasers were influenced by more than 1,700 variables. Similarly, by using the knowledge gained from log-linearized LOGIT models, they enhanced market shares on product lines by 8-10% and improved demand forecast accuracies by 15-20% for both domestic and international markets!
Because of their mom-and-pop to Fortune 500 experiences, Premier Business Experts can conduct questionnaire, panel, focus group, mystery shopping, exploratory, descriptive, causal, correlation, and multiple regression statistical studies! These often provide Returns on Investments exceeding 1000%! Moreover, you may find it of interest to know that the professionals at Premier Business Experts developed systems that predicted the sales of “never-before-made products” for every outlet, so that manufacturers could better prioritize their New Product Research and New Product Development activities, as well as determine the optimal media allocations and/or advertising dollars. Focusing on just the “dropping of coupons,” such efforts have in the past increased the response rates by more than 300%!
Using cross-tab, Chi-square, Kolmogorov-Smirnov, Mann-Whitney, ANOVA, MANOVA, Wilcoxon and other statistical tests, along with factor, cluster, discriminant and multidimensional techniques, the professionals at Premier Business Experts have segmented markets and helped companies to develop highly successful product lines. In fact, such techniques enabled one service provider to grow its daily sales from $100,000 to $800,000, a durable goods retailer to increase its $80 million gross revenues by more than 30%, and another multi-state, coast-to-coast, specialty retailer to more than double its sales!
Since the teams at Premier Business Experts have a VERY high level of expertise, they are uniquely qualified to handle your statistical business needs, whether you are a one-person shop or a multinational corporation! This is true whether your needs are for an analysis of your databases to spot profit-enhancement opportunities and/or to develop Six-Sigma, Quality-Assurance programs. Thus, whether you are a one-person shop or a multinational corporation, the professionals at Premier Business Experts can build Management Information Systems and more sophisticated Decision Support Systems that tell you when to offer promotions, run advertisements, manufacture products, order raw materials, schedule employees, ship products, etc. As a result, stakeholders in these companies have seen their profits increase by double-digit and even larger percentages!
There are many examples of such efforts found on the Advertising Allocation Optimization Modeling, Benefits & Compensation Modeling, Business Startups, Feasibility Studies & Business Plans, Market Structure Studies, Marketing Research, Potential New Site Evaluations, and Revenue & Cost Projections pages on this website. Even so, another interesting situation is presented in the below story.
[dropshadowbox align=”none” effect=”lifted-both” width=”100%px” height=”” background_color=”#789351″ border_width=”1″ border_color=”#dddddd” ]Specific Problem Handled by Premier Business Experts & the Beneficial Results
Problem: One of the largest battery manufacturers in the United States developed an extended life video camera battery pack. However, management determined that it would be too expensive to get the product into stores due to there being slotting fee costs of approximately $100 per store.
Solution: The remedy that Premier Business Experts came up with was to obtain a list of individuals who owned a video camera. This list, prepared from warranty card information, had three million households on it. Based upon the information on the database, it was determined that it would be better to mail to a sample of the three million households, rather than all three million. Then, after determining that the final, mathematical, predictive model would likely have five variables (i.e., based upon the quality and types of data), it was determined that the proper sample size was 30,000. Thus, promotional literature was sent to a random sample of 30,000 households drawn from the database with three million video camera households. After a six-week period, some of these 30,000 households responded positively, while others did not respond to the offer. Since this sample of 30,000 households had been divided in half before the offer had been mailed, half of the sample was used to build a predictive model. The model was then tested by predicting the results for the other 15,000 households and comparing the prediction to the actual results for this holdout group. Once the scoring model was built and tested, each of the remaining households on the three-million-household database was then given a probability score of buying the video camera battery pack, based upon the mathematical model. The significant variables in the model included things like presence of small children (as well as children of marrying age), travel (i.e., especially international), income, ethnicity, and lastly whether or not the household had home exercise equipment. This latter variable was highly significant since it captured households who had enough money to belong to a gym, but who instead purchased exercise equipment due to a desire to spend more time at home. By mailing to households with “breakeven and better” probability scores, the battery company made $2.7 million profit. However, if it had mailed promotional materials to all the video camera households on its database, it would have made $1.7 million, and if had sold battery packs in stores it would have lost money for at least two years. The result of Premier Business Experts’ effort was that the extended life battery manufacturer made $1 million more than it would have otherwise.[/dropshadowbox]
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