D&G wanted to predict the likelihood of churn when customers are up for renewal. They used pricing optimization to determine the price point at which customers are most likely to be happy with the warranty coverage they receive and renew their policies.
Using DataRobot automated machine learning platform, D&G now provides optimal pricing to 300,000 customers a month. They can now utilize advanced machine learning models which they export from DataRobot as scoring-code. This means they can run the optimizations locally in a pricing engine such as Earnix.
With D&G’s new automated process, uplifts from pricing optimization have increased from around 1.5% of revenue to close to 4%.