DataRobot > Case Studies > DataRobot Helps D&G Find Success When the Price Is Right

DataRobot Helps D&G Find Success When the Price Is Right

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Customer Company Size
Large Corporate
Region
  • Europe
Country
  • United Kingdom
Product
  • DataRobot Automated Machine Learning Platform
Tech Stack
  • Python
  • R
  • DataRobot API
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Revenue Growth
  • Customer Satisfaction
Technology Category
  • Analytics & Modeling - Predictive Analytics
Applicable Functions
  • Business Operation
  • Sales & Marketing
Use Cases
  • Predictive Replenishment
Services
  • Data Science Services
About The Customer
Domestic & General (D&G) is a company that specializes in providing specialist warranties for household appliances. The company has been in operation for over 100 years and is headquartered in the UK. D&G has more than 16 million customers in 14 countries and protects over 200 different types of electrical items. The company focuses on customer satisfaction and personalization, making it the largest appliance and gadget insurance company. D&G offers more coverage than other warranty providers and aims to deliver personalized and relevant offers for complementary services and products that make sense for each customer.
The Challenge
Domestic & General (D&G), a specialist in providing warranties for household appliances, was facing a challenge in personalizing and delivering relevant offers to its customers. With 9 million customers in the UK and 16 million globally, the company was resource-constrained for the scale of personalized customer service and offerings they were trying to reach. The company's pricing team had to build a lot of models for each customer, which was a laborious and time-consuming process. D&G wanted to predict the likelihood of churn when customers are up for renewal and determine the price point at which customers are most likely to be happy with the warranty coverage they receive and renew their policies. However, delivering this level of personalization to individual customers required building a lot of pricing models, which was not scalable with their existing resources.
The Solution
D&G turned to DataRobot's automated machine learning platform to automate the building of their predictive machine learning models. The company launched a POC engagement with DataRobot at the beginning of 2017, testing a price optimization approach with the DataRobot API. The POC delivered more accurate models in less time than the status quo in R. Once they got buy-in and security approval to move forward with the cloud, D&G was up and running and ready to optimize pricing for all its customers. Now, all of their pricing models are built in DataRobot and fed into D&G’s price optimization system. For each customer, D&G’s pricing system makes a call to DataRobot and identifies the customer’s profile. DataRobot then spits out 200 price points for each customer, with a prediction at each price point. The system then identifies the optimal price where the customer will most likely renew and be happy with his service and delivers that to him at the time of renewal.
Operational Impact
  • D&G can now build a model in just one hour with DataRobot, compared to a whole day or longer with their old process.
  • D&G currently does batch predictions for 300,000 customers each month, using DataRobot to predict 200 price points for each of their customers.
  • The company is ready to take price optimization predictions to the next level by delivering optimized pricing in real-time for every customer, for every point in the organization.
Quantitative Benefit
  • Uplifts from pricing optimization has gone from around 1.5% of revenue to close to 4%.
  • The company is planning to deliver 500,000 to a million price quotes a month through price optimization in real-time underpinned by models built in DataRobot.

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