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Chordiant Awarded New Patent for Predictive Decisioning
Tuesday, May 15, 2007
Customer Experience Leader Wins Exclusive Rights to Industry’s Most Advanced Customer Behavior Prediction Technology
Cupertino, CA -- Chordiant Software, Inc. (Nasdaq: CHRD), the leading provider of Customer Experience (Cx™) software and services, today announced that the US Patent and Trademark Office has awarded Chordiant patent number 7,194,380 for a new innovation in advanced predictive decisioning technology. Predictive Decisioning was first introduced into Chordiant’s family of "Cx" enterprise customer experience management solutions in 2005. Winning this patent further extends Chordiant’s lead in providing the most accurate customer behavior predictions possible in business today and delivering the best possible customer experiences.
The patent covers the design and implementation of a new type of predictive analytics algorithm created specifically to use customer data to accurately predict behavior and propensities across key business areas including product purchasing, retention, and risk. The algorithm provides superior predictive capabilities because it uses a non-linear analysis of characteristics. This non-linear capability enables it to not only make accurate predictions about existing customers, it can "generalize" predictions and accurately apply them to new customers for whom very little data is available.
Chordiant leverages its decisioning technology across all of its vertical applications for the retail banking, insurance, and telecommunications industries to help companies control and optimize the customer experience. With Chordiant decisioning, companies become more responsive to customer needs and more agile in the face of market pressures. Business line managers and marketing managers can create customer interaction and marketing strategies that help build customer loyalty while increasing efficiency and profitability. The technology also helps enable retail banking officers, lenders, call center agents, and all customer-facing service providers to make next-best-action offers and recommendations to consumers in real time.
"Chordiant’s unique decisioning capabilities have enabled the company to quickly establish itself as a leading provider of customer experience management solutions," said Jim St. Jean, vice president of worldwide engineering, Chordiant Software. "For our customers, some of the world’s leading brands in retail banking, telecommunications and insurance, this translates into customer experiences that help them rise above the noise for consumer attention and loyalty. Our decisioning capabilities enable them to build and differentiate on something none of their competitors can copy—the relationships they have with their customers."
Most predictive algorithms calculate probabilities based on a mathematical representation of the relationship between customer characteristics and customer behavior. Typically in a linear form, such equations can only estimate probabilities for one characteristic at a time and add those estimates together to try to predict behavior for the customer as a whole. Such linear equations are inaccurate, as customer behavior is by nature non-linear, and multiple characteristics must be correlated in tandem to accurately predict propensities. Chordiant has a long history in developing non-linear equations to accurately predict customer behavior and, with this patent, goes further to capture and combine all relevant characteristics in a novel non-linear and highly accurate non-algebraic representation, thereby enabling the highest degree of accuracy in predictive analytics for business.
About Chordiant Software, Inc.
Chordiant helps leading global brands such as HSBC, Barclay’s, CIBC and Capital One deliver the best possible customer experience. Unlike traditional business applications, Chordiant Customer Experience (Cx) solutions blend insight with predictive desktop decisioning to uniquely understand the customer’s behavior. This deeper understanding cultivates a lasting, one-to-one relationship that aligns the most appropriate value proposition to each consumer. With Chordiant Cx solutions, customer loyalty, operational productivity and profitability reach new levels of return. For more information, visit Chordiant at www.chordiant.com.
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