Customer Behavior Patterns Using Predictive Analytics Essay

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This case study reviews the strategy followed by Union Investment Group (UIG) to analyze customer behavior patterns using predictive analytics (Union Investment GmbH, 2015). With the business objective of boosting profitability and staying ahead of the competition while facing a customer base that demanded individualized product offerings, UIG teamed with IBM to determine the problem at hand. After describing the problem, this case study next considers the stakeholders involved, other expert opinions, recommendations, and caveats. Problem Definition UI faced three significant constraints in satisfying the business objective of boosting profitability while staying ahead of the competition. First, the asset management specialist offered a large number of financial products to retail investors. Second, UIG’s financial products were sold not only through retail sales, but also through a co-operative banking group. The members of this group often consisted of highly specialized banks that served a variety of investors. Third, the organization realized that a mass market approach would be unsuccessful, therefore requiring the customization of services for both individual and corporate customers. Ovecoming these constraints required UIG to go two levels deeper in order to define the actual problem to solve. From the business standpoint of minimizing risk and increasing profitability, UIG needed to know which products would be successful before offering them. However, to learn
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