1. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk F eedom! How R changed us and what we do Frank Hedler & Ryan Howard Simpson Carpenter Ltd

2. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk Who we are Previously Kantar Media, passionate about data visualisation Applications of R include latent class, brand diagnostics, machine learning algorithms and data integration techniques. Passionate user and advocate of R since version 2.0 back in 2004 Uses R to do: customer experience modelling, pricing and line optimization, data visualization and natural language processing. Frank Hedler Director Advanced Analytics Ryan Howard Associate Director

3. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk Market Research agency privately owned, based in Wimbledon 35 employees 3 in Advanced Analytics Automotive, Retail, Technology, Pharma, Charities Brand and advertising tracking, customer loyalty, new product development, U&A and segmentation What we do

4. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk Market Research agency privately owned, based in Wimbledon 35 employees 3 in Advanced Analytics Automotive, Retail, Technology, Pharma, Charities Brand and advertising tracking, customer loyalty, new product development, U&A and segmentation What we do We need to be agile, flexible and innovative

5. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk R adds width to our toolbox and broadens our horizon! By looking beyond conventional MR, and adapting sophisticated solutions from e.g. Bio-informatics (TraMineR) or Computer Science (tm) helps us doing exactly that R adds depth to our toolset It allows us to build our own proprietary tools, and offers numerous alternatives to conventional algorithms, e.g. clustering, or innovative data visualizations

6. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk Our toolbox went from looking like this…

7. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk … to something more like this!

8. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk F eedom from commercial constraints Sawtooth £ 10,000 (£4500 one-off) SPSS £ 8,450 Latent Gold £ 871 SAS £ 3,840 R £ 0

9. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk There is yet another benefit commercial software You need to know what you are doing! And your clients and yourself will benefit from it R

10. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk We use R to automate data processing and analysis, embedded in larger processes of reporting automation, and therefore f r ees us from repetitive tasks Efficiency Tracker comes out of field R scripts automated data checks & analysis calculation of aggregates export into CSV files VBA pull data from CSV push into PPT template

11. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk require(ChoiceModelR) Using libraries AlgDesign and ChoiceModelR we are able to design choice based conjoint and Max Diff exercises and estimate the related models at the back-end. Greater flexibility Freedom of design Full control At no cost!

12. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk require(treemap) R provides us with an incredible number of ways to visualize data. And contrary to many commercial applications, all the plots are fully customizable

13. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk require(vcd) New car Previous car A relatively big table becomes easily readable with the right visualization

14. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk require(maps) library(maps) library(mapdata) library(RColorBrewer) library(classInt) library(scales) var = data$awareness colors <- brewer.pal(9, "YlGn") brks<-classIntervals(var, n=9, style="equal") brks<- brks$brks par(mar=c(0,0,0,0)) mymap = map("worldHires", data$country, fill = T, col = colors[findInterval(var, brks,all.inside=TRUE)], xlim=c(-10,45), ylim=c(35,70), resolution = 1, myborder = 0.01) legend(x = "bottomright", legend=leglabs(percent(round(brks,2))), fill=colors, bty="n",x.intersp =.7, y.intersp = 1, cex = 1.5)

15. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk require(googleVis) R gives us the freedom to easily access tools like googleVis. We illustrate the sometimes complex relationships in the data in an easy, intuitive way for our clients.

16. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk require(tm) Term frequencyAssociations of termsIdentification of topicsBrand association map R enables us to process unstructured, open ended customer feedback, and to analyse it just like structured numerical data. require(wordcloud)require(corrplot)require(FactoMineR)

17. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk Tackling two fundamental problems in Customer Satisfaction modelling Multi-collinearityStructural missing data require(relaimpo) Implementation of the Shapley Value approach, a decomposition of variance into non-negative contributions Switch model* * The model has been first presented by Hedler, Conklin and Wirth at the Advanced Research Techniques Forum in 2010 Building proprietary tools (example 1)

18. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk Building proprietary tools (example 2) The KANO model distinguishes between essential, differentiating and un-desired product or service features. require(GA) We use the KANO classification of features, formulate a target function in R and apply genetic algorithms to find the optimal combination of features for each customer segment.

19. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk … and on and on it goes…

20. Frank Hedler – Director, Head of Advanced Analytics fhedler@simpcar.co.uk Ryan Howard – Associate Director rhoward@simpcar.co.uk Thank You!