"The future of Data and Analytics is Predictive Analytics."
Before discovering and finding out how Predictive Analytics can enhance Business Growth and improve business processes, lets quickly dive into knowing what a Predictive Analytics actually is.
- What is Predictive Analytics?
You must have known the term Analytics. Data Analysis is the common term used in businesses today where a large number of datasets are explored using Data Analysis to get the relevant information and insights out of it. Predictive Analytics is the broader view of Data Analysis where future patterns are discovered out of big data and unforeseen future events are predicted easily.
With the help of Predictive Analytics businesses now predict what ups and down they are going to face in the nearer future. These predictions help a business in taking controlled decisions and thus improves the major business decisions.
"The use of various techniques and processes by which future events and future patterns are predicted in businesses is called Predictive Analytics."
Predictive Analytics are so helpful to a business that it has become the necessity of the businesses today to use Predictive Analytics. There are various ways where using
Predictive Analytics a business increases its overall efficiency and attract heavy ROIs (revenue on investments).
The 5 ways how Predictive Analytics can enhance Business Growth are:
Frauds are the major concern for any business, especially in the financial sector. The financial sector suffers from a major loss when frauds are done by potential customers. These frauds not only affect the business financially but also makes a business lose credibility for not securing the assets of its other potential customers in the market.
Using Predictive Analytics now historical data of the customers along with their present evidence are used relatively to predict and detect frauds that might occur in the future. The predictions made by using Predictive Analytics in fraud detection are mostly accurate and businesses get to save themselves from the underlying frauds.
Targeted Advertisements play a very important part in improving the sales and revenue of businesses. Using Predictive Analytics, now businesses easily predict the relevant interests of their customers and answer the bigger questions about what their customers' interests are? What products amaze their customers? And what product their customers might be interested in the future? With the help of Predictive Analytics, businesses predict the future trend of their customers and accordingly target the advertisements before them. These advertisements are very effective and create huge ROIs.
Two factors are important for a market campaign:
- You should know the relevant interests of your customers so you can accordingly project only those of your products before them.
- You should know the trend of the market. Customers are easily attracted to the latest trends and for a business its utmost important to be updated of what the market trend to attract its customers.
Both of these factors are easily known using predictive analytics.
Using big datasets and exploring them using various analytics and predictive analytics tools, the interests of the customers and the market trend are easily known to businesses now.
- Personalized customer experience
Personalizing is the best part of any customer. It feels great satisfaction to the customers when they get their favorite products popping up on their windows during an online purchase. This personalized experience is offered by Predictive Analytics whereby using Predictive Analytics tools.
Using Predictive Analytics the behavioral patterns of the customers are easily learned. This learning gives a huge insight into knowing what interests a particular customer and what is his purchasing habit. According to his purchasing habits, relevant items are shown up at the screen while at online purchase. Thus providing a Personalized customers experience.
- Increasing operational efficiency
The operational efficiency of business increases when they already know what events can occur in the future. An online shopping company know the future trend of its customers- thus does marketing on only those products, a restaurant already knows how many guests are going to be arrived at its place- thus preparing itself accordingly. This gets possible using Predictive Analytics.
Using various tools and predictive analytics datasets are explored by business and prediction is made accordingly of what could possibly be the future event.