Predictive Analytics is a technique of Data Analytics that analyzes current and historical data to make predictions or informed guesses about future events or outcomes. Predictive Analytics is widely used across industries owing to its versatile and broad nature. The potential of Predictive Analytics is immense for business organizations as it provides myriad advantages from detecting fraud to assessing demands. Here we will analyze the importance of predictive analytics for business growth in detail.
Optimize Marketing
Marketers can leverage Predictive Analytics to foresee upcoming trends and design the marketing strategy according to it to create maximum interest and leads. With a better idea of consumer interests, marketers can segment the audience based on their interests and demographic info and target the right message to the right audience. This helps businesses to avoid the disadvantage of ad noise and they can ensure that the customers are getting the relevant marketing messages.
Understand Customers
Predictive Analytics will help businesses to understand their customers better by analyzing everything from demographic data to Social Media data. A reliable analytics model will help you in identifying customers who can convert, bring in new customers and retain the existing ones. For example, Netflix used Predictive Analytics on their historic data and created a perfect recipe for a hit show. They found out that their audience’s most loved director was David Fincher, Kevin Spacey as leading actor and with many more similar insights created their hit show- House of Cards.
Reduce Attrition
Businesses can forecast the next possible action of customers by employing the strategy of Predictive Analytics and use the insights to win the lost customers back. Crucial information such as the reason that prompted your customers to switch to your competitors will be revealed. Also, you can foresee the customers who are planning to exit and take action before it’s too late.
Improve operations
Predictive Analytics empowers businesses by delving deeper into the details of business operations and exposing the inefficiencies in it. With foolproof insights on implementing improvements, you can streamline operations and function efficiently. Follow this link to read about 5 examples of Predictive Analytics optimizing operations in 5 different sectors.
Optimize Pricing & Opportunities
Predictive Analytics helps you to analyze product information, purchasing scenarios, prevailing trends, customer segmentation, and various other factors that influence product pricing and optimize it to maximize sales and profitability.
It can also be used to analyze buying patterns of customers and lure them with discounts and promotional offers, creating new revenue sources.
Making data-driven decisions rooted in Predictive Analytics models is assured to add more clarity and insight to businesses. The viable applications of Predictive Analytics are on the rise and if you are planning to take advantage of it, talk to the experts at Site Lantern and find Data Analytics Solutions that your business needs. Visit our website and know more about services that are powered by Predictive Analytics.