Predictive Analytics Essential Training: Estimating and Ensuring ROI

Turn predictive analytics into a profit center at your organization. Learn how to measure the return on investment (ROI) and prove the long-term value of your projects.

Introduction

• Introduction

1. Effective Problem Definition

• Estimating ROI
• Business considerations when measuring ROI
• ROI starts with problem definition
• Why estimating ROI is perceived to be challenging

2. Estimating ROI before the Project Starts

• Introducing the confusion matrix
• The possible outcomes when a micro decision is made
• Estimating the overall size of the problem
• Assigning value to the four possible outcomes
• The impact of model performance on ROI
• Two other example scenarios

3. Calculating ROI after the Model Is Built

• Determining the cut-off on propensity scores for interventions
• A/B testing and partial rollout during the evaluation phase
• Understanding the monitoring phase
• Revisiting ROI 12 months after deployment

Conclusion

• Next steps