Products & Services: Fair Isaac Segmentation Models

Drive Strategy Decisions Based on Analysis of High-Value Customers

Fair Isaac Segmentation Models bring analytics to the strategic level by determining where an organization’s value is concentrated. Unlike standard clustering methods, Fair Isaac Segmentation Models leverage a wide range of data, proprietary analytics, and industry expertise to develop customer segments that are holistic and actionable from a strategic perspective.

Fair Isaac Segmentation Models help you focus your business strategy on the most valuable and engaged customer segments. This requires a new approach to segmentation, one that identifies high-value customers and helps you increase your relevance to those customers. Fair Isaac has developed a new analytic approach that provides this multi-dimensional view of customers.

Fair Isaac Segmentation Models blend two different approaches to customer segmentation. Cluster segmentation methods are useful for understanding customer profiles and developing highly targeted actions, while profitability analysis identifies the most valuable customer segments. By balancing both approaches in a single segmentation scheme, we can do more than simply rank-order customers by profit level — we can tell you what different high-value segments care about, to help you take targeted actions designed to increase response and loyalty.

With Fair Isaac Segmentation Models, you can:

• Inform strategy development and metrics across your pillars of power (Finance, marketing, Operations, Risk)
• Take a customer-centric view of your business, creating more relevant customer offers that build profitable relationships
• Segment each individual customer based on a rigorously developed analytic solution

Fair Isaac Segmentation Models can identify both customer value and customer profiles, and show you which segments are building or eroding value.

A new way of analyzing customers

Fair Isaac Segmentation Models are custom analytic engagements. We partner with you to understand the metrics that matter most to your enterprise, and develop agreed-upon measures of customer value. We then analyze data from throughout your organization, using proprietary analytic techniques.

The result is a set of customer segments that define your customers in multiple dimensions, helping you understand their behaviors, demographics, and relationships, as well as their value to your organization. Segments can be differentiated by characteristics such as:

• Customer profit contribution
• Write-off rate
• Payment patterns
• Engagement with the business
• Spending preferences
• Demographic information
• Channel preferences

Strategies driven by customer value

Segments highly differentiated by value drive strategies that have positive impacts immediately. For example, you can:

• Change call center metrics and incentives to reward retention of customers belonging to high-value segments
• Measure marketing campaigns and rewards programs based on their ability to attract, retain and grow high-value customers
• Drive product innovation based on what is relevant to high-value customers
• Focus attrition models on your most desirable customer segments

Connecting decisions across the lifecycle

Fair Isaac Segmentation Models can help you connect decisions across the customer lifecycle. By using a common view of strategic customer segments, you can develop customer-level strategies that systematically increase customer value.

Read the Fair Isaac Segmentation Models Product Sheet