The rise of Big Data has resulted in an increased emphasis on analytics. The ability to sift through mountains of information, extract what’s of value and turn that material into actionable insights has fundamentally changed the way businesses operate. This is particularly the case with predictive analytics, which enables business leaders to more accurately forecast what will happen next and facilitates better decision-making. And thanks to these predictive tools becoming more accessible, affordable, agile and scalable, it’s never been easier for companies of every size to take advantage.
There are a great number of benefits to leveraging predictive analytics for business. To follow are five of the most impactful.
Maintain competitive advantage.
With predictive analytics, business leaders can collectively gather structured and unstructured data in any format from multiple sources (internal, third-party, social, etc.) and combine that information to instantly and accurately predict what is likely to occur. This helps to identify valuable opportunities upon which the company can capitalize quickly, and in many cases, keeping them steps ahead of the competition. Essentially, it’s like having a crystal ball for your business.
Proactively solve problems.
Wouldn’t it be great if you could identify a potential problem and take corrective measures before it occurred instead of after the fact? Imagine how much better you’d be able to improve performance and mitigate potential damages. That’s precisely what predictive analytics can offer. Thanks to advanced technology like machine learning, users can instantly pinpoint the root cause of a problem – such as a system outage – so it can be addressed right away, often before it even has a chance to develop into a significant and costly issue.
Obtain more meaningful customer insights.
Predictive analytics can help businesses identify which customers are most likely to buy and when. They can also help marketers better understand why customers don’t buy so that appropriate modifications can be made to improve conversion rate. This has proven to be an invaluable tool for e-commerce companies. Another industry benefiting from predictive insights is that of health care. Data gathered from patient behavior monitoring helps providers predict when and if a patient may become ill.
Reduce and/or eliminate uncertainty.
Businesses in the manufacturing industry can leverage predictive data to better manage inventory. For instance, every party in the supply chain can enjoy real-time visibility to data surrounding production, quality control and inventory levels. This can help to prevent shortages or overages from occurring. Furthermore, the data gathered and analyzed can also aid in forecasting for future need. That way things like seasonal demand and other fluctuations in sales don’t result in unexpected and costly inventory mishaps.
Improve retentions rates.
When you are able to understand why people – either employees or customers – choose to leave, you can take measures to prevent that churn from occurring. For instance, data can tell a service manager what steps in the customer journey are causing frustration and potential loss of business. Likewise, business leaders can identify what it is about a particular job and/or work environment that results in employee dissatisfaction. Those things can then proactively be improved for better retention in the future, ultimately improving the company’s bottom line.
As you can see, predictive analytics can be invaluable to businesses in just about any industry. These tools provide the ability to foresee the future and take action, which is proving to be the way of the future for companies across the globe.
Are you using predictive analytics in your organization? If so, we’d love to hear about it! Please share in the comments below and let’s discuss!