In today’s fiercely competitive business environment success is contingent on understanding customer behavior, identifying the right customers and customizing offerings to suit their needs and potential. Every time a business makes a product offer, approves a loan, makes a retention call or sends a collection letter, it takes a decision, the revenue and cost impact of which is realized only in the future. Fractal provides modeling solutions that enable businesses to address many critical issues such as credit scoring , behavioral scoring , pricing, valuations and predicting customer behavior accurately and well in advance.

 

Our modeling approach helps provide strategic insight into questions such as:

* Who is likely to buy a product?

* Which is my most profitable customer segment?

* How can I measure and understand optimal price points for various products?

* Who is likely to cancel subscription?

* What is a customer’s default likelihood?

* What is the potential profitability of a customer?

 

Our Tools and Techniques

We design advanced analytical models using sophisticated statistical tools that include:

* SAS, SPSS

* LISREL, SmartPLS, AMOS, WinCross, PolyAnalyst, Megaputer

* MR Tables, Quanvert

We use cutting edge mathematics and technology, and back it with exhaustive data models built off bureau and transaction data. Some of the advanced modeling techniques that we deploy include:

 

* Latent Class Analysis – Factor / Principal Component Analysis

* Segmentation Analysis – Clustering, Discriminant Analysis

* Conjoint Analysis

* Structural Equation Modeling & Path Analysis

* Linear, Panel, Logistic Regression & CHAID

* Adjusted Distributed Lag Model, Time Series Methods

Our proprietary framework includes analytical data models, data transforms, data visualizer, non-linear pattern detectors and a strategy simulator. Through a combination of sophisticated mathematics, robust processes and tested data models we have consistently provided our clients some of the finest capability to predict behavior and distinguish between customers

 

Model Tracking

Fractal follows a comprehensive and robust approach towards model tracking and validation. Dynamic business environments consistently impact customer behavior, needs and demands thus ensuring that models have limited lifetimes. Fractal’s model tracking services are geared towards tracking the performance, stability and applicability of the hundreds of models that analytics savvy organizations use at any point of time. Our model tracking services quantify the effectiveness and relevance of existing models, thus identifying models that require recalibration and redevelopment.

 

Model Validation

While models are becoming increasingly important they come with inherent model risks and incorrect development or application of models can potentially lead to large losses. Model risk can be reduced significantly through rigorous model validation. Fractal provides model validation services to companies that use internal models and third party models. Our approach to model validation includes validating data, the underlying theory and mathematics, as wells as back testing analysis. Our model validation programs establish validity and reliability of models, while promoting improvements in existing models. Our model validation programs also promote a clearer understanding of the strengths and weaknesses of a model among management and user groups.