AI COMPUTER MODEL SAVES RETAILERS FROM COSTLY MISTAKES

A new mathematical modeling process is now available to predict the potential deposits or sales volume of any prospective geographic location. Retailers and Bankers can save considerable money by avoiding the expenses related to opening new stores in poor locations. Armed with this information, management can select locations with the greatest potential for profitability. The information will also help managers negotiate appropriate terms of new location property acquisition.

The modeling system combines data mining, artificial intelligence and genetic algorithm techniques. The process actually "breeds" a successive series of models until the best, most accurate combination of predictive variables is determined. Once the model is built, users can analyze any location in the USA using standard, easily obtainable demographic data.

The model is delivered as an "add-in" to Microsoft EXCEL. Other analyses possible with the model include comparison of existing locations with prospective ones; comparison of existing location performance to potential performance; and comparison of existing locations with competitor locations. The model also makes it easy to perform "what if" analysis among a variety of data attributes.

Similar techniques can be used to develop models of client profitability, customer loyalty, and the like. These models can be delivered to "front-line" personnel for point-of-service use, an especially attractive utility for bankers. The modeling techniques also permit retailers to determine which customers are at the most risk of being lost to competition.

The model was developed by mathematicians associated with Management Assistance: Programs and Services Inc (MAPS) a twenty-five year old marketing firm located in Asheville, North Carolina. The company has extensive experience with data modeling, customer profiling, profitability modeling and market consulting. MAPS can be reached on the Web at www.management-assistance.com.

Contact George Self, president of Management Assistance: Programs and Services Inc, 828-252-2651 x17, 800-544-8269 x17, gself@management-assistance.com.