Advantages of Statistical Research

Identify Risk or Opportunity

Statistical research and data mining models can be used to identify both specific risk or opportunity to a company. Credit card companies use data mining models to identify possible fraudulent transactions or the probability of a consumer to default on a loan or miss a payment. Statistical research can also be used to identify high quality consumers that will minimize possible borrowing risks and maximize earnings.

Evaluate Strategies Pre and Post Implementation

Statistical research can be used to evaluate the effectiveness of a sales or marketing strategy before and after it is implemented.

Market Segmentation

Statistical research can be used to identify high quality consumers who are profitable to retain and low quality consumers who are not profitable to retain. High quality consumers who are at risk of canceling a service might respond to a particular marketing strategy with a higher probability rather than an alternative strategy. Statistical research and predictive modeling techniques can be used to maximize the retention of quality consumers.

Cross Selling

Statistical research and data mining models can be used to identify consumers that are likely to purchase additional products from organizations that maintain and collect elaborate data.

Identify New Markets

Statistical research can be used to identify new markets and opportunities. A properly designed survey and sampling techniques can be used to identify consumers that are likely to purchase a brand new product and whether it would be profitable for a company to bring it to market.

Minimize Variability of a Process

Many times a company may be more concerned about the variability of a response around its mean rather than the actual mean response. Statistical research can be used to ensure homogeneity of product rather than products that are manufactured with different tolerance levels.