According to Odessa, a provider of technology solutions for asset finance, businesses can now use artificial intelligence/machine learning (AI/ML) to better predict the likelihood that their customers will renew their contracts with 85% accuracy.
Knowing which customers are likely to renew — and which are not — enables companies to allocate both the attention of their workers and the inventory of their products. ML enables computers to infer patterns from data. In many cases, the model portrays important data to the prediction that is unbeknownst to the human mind.
“AI’s ability to predict agreement renewal enhances customer retention, optimizes customer lifetime value and helps cash flow. The key was to combine business expertise with tech experts who live and breathe the asset finance and leasing industry,” Jeff Lezinski, executive vice president of Odessa, said. “Even though there is a significant amount of data for the AI to process, embarking on this type of project is very manageable for asset finance and equipment leasing companies. It’s a relatively simple use case that can produce significant results.”
“Odessa has long hired industry experts who have experienced the same challenges our customers face,” Eric Bernstein, CEO of Odessa, said. “That expertise enabled us to instruct the AI properly to get the most accurate results. We will continue to use AI and every tool that helps us help our clients understand their customers and address their needs. We’re excited to see what else AI will do for equipment finance.”
