Five reasons why you need predictive analytic's for your business

Most entrepreneurs and innovative experts including people with very high vision and dreams often make certain mistakes, by delving into projects without looking at certain factors which can likely leverage  from historical data. The capability to integrate social data and unstructured text provides a profound knowledge of how consumers engage with and impact others in their social connections, creating the opportunity to predict churn or prospective customers based on historical data.

Now Predictive analytic s utilizes your data to make connections related to the past experience, and it makes use of this information to predict what may affect your company in the future. The results of using predictive analytic s can be amazing, and many business leaders are coming around to the view that it is an indispensable solution to stay ahead of the market competition.

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Now here are simple reasons why you need predictive analytic for your business

1) Stay ahead of your competitors

Predictive analytics helps you in taking advantage of your company’s strengths and competitors’ weaknesses. By selecting the data surrounding your company’s experience, you get insights unique to how you perform. Such insights are not trivial; in fact, they give detailed information on how you are successful and where your organization’s individual advantage exists.

On the other hand, predictive analytics provides you an evaluation of the activities of consumers who have been exposed to not only yours but also your competitors’ marketing plans. This modeling process distinguishes between customers who chose you versus those who chose your competitor, finding out what were the factors involved in their decision.

2) Boost sales and retain customers

Predictive analytics gives your company the information that is needed to target customers with the right message at the right time. By predictively analyzing customers, based on their next probable action whether it will be a purchase or churn, you can more practically plan and spend your dollars on messaging them.

Cut costs on your marketing messages and increase the rate of response by compelling those who are doubtful to respond based on their predictive rating. At that time, you can offer discount codes only to those who are about to leave and save the cost of handing out to a broader audience.

3) Maintain business integrity 

It is humanly possible for fraud investigators to inspect only a certain number of cases each month. With predictive analytics, you can use your company’s past experience with fraud cases to gauge transactions according to their level of risk. To elaborate, if you narrow the number of potential fraud cases precisely, then the investigator’s time will be optimally spent on solving fraud cases instead spending time on false positives.

4) Improve your business core competencies

The next step to progress apart from increased sales is to enhance your company’s core offering and the way they are delivered. This may mean different things across different industries, but basically, they all focus on one thing – using predictive analytics to optimize their approach to marketing.

5) To exceed expectations of modern consumers

If you have ever received an email from a company that isn’t relevant to you, then undoubtedly you must have felt frustrated. From this instance, you can understand the advantage that predictive analytics brings to consumers.

Uninvited and irrelevant communications are not liked by consumers; instead, they prefer personalized communication. Moreover, predictive analytics also takes care of consumer security expectations, strengthening security while triggering fewer false alarms. With a positive customer experience facilitated by predictive analytics, your business can make way for a rising and loyal customer base.

Summary

When using analytics to assess your company’s performance, most standard methods will sum up past success or failure. But predictive analytics can create learning from previous experiences, understanding mathematical trends and patterns among your data and using them to anticipate unexpected and future possibilities. Without a shadow of doubt predictive analytics can take things a level ahead by providing valuable insights to decision-makers for designing the next action.