With more data being produced than ever before, the need for more effective, efficient processes has grown too. Predictive analytics is one such process, and one that until recently was reserved only for those who were particularly technically minded.
But fast forward to touch screens, fast food apps and instant streaming of all your favourite TV shows – and it makes sense that some of that technology should be put to good use in the working world, too. Now that computers are so much more accessible than they ever have been, find out why predictive analytics is being used by businesses in industries of all kinds.
1. Improve efficiency in production
The benefits of predictive analytics for the production and manufacturing industries are particularly prevalent. Using predictive analytics, companies can effectively forecast for inventory and required production rates, while also using past data to estimate potential production failures. They can then use this to prevent the same errors from occurring.
2. Gain advantage over competitors
Why predictive analytics? Because it can give you insight into valuable information that already exists. It just needs digging up. Tapping into the customer data you have available can present you with insightful information as to why customers chose you over your competitors, highlighting unique selling points that you can then further promote to enhance leads.
3. Reduce risk
Dependent on your industry, predictive analytics can be used considerably when it comes to risk reduction. Sectors such as finance and insurance use predictive analytics to help construct a valid depiction of a person or business they’re screening, based on all data available to them. This can then form a more reliable interpretation of that person, business or incident which can be used to make sensible, effective decisions.
4. Detect fraud
One of the most beneficial uses of predictive analysis is fraud detection. The process is particularly attuned to fraud detection and prevention by recognising patterns in behaviour. By tracking changes in this behaviour on a site or network, it can easily spot anomalies that may indicate threat or fraud, which can then be highlighted and prevented.
5. Better marketing campaigns
You’ve started your marketing campaign, it’s out in full swing and performing well. But could it be performing better? Are you missing out on further opportunities? Predictive analytics’ bread and butter is sifting through data to provide you with educated predictions on what to expect next. Which is why it can look at consumer data for specific campaigns and tell you what’s working, what isn’t, and what you can do to cross-sell, up-sell and increase your revenue.
6. Meet consumer expectations
No-where shows the benefits of predictive analytics more than in your consumer targeting. Let predictive analytics do the behind the scenes work to help you form a better picture of who your customers are and what they want, so you can provide an offering tailored specifically for them. No one wants to open an email that they know has nothing to do with them. Scratch that. No one does, period.
There’s no doubt that without predictive marketing, your world would be a very different place. And although the name suggests a degree of risk – it results in just the opposite. The predictions are so educated and driven by data that they provide meaningful, timely insights across disciplines and industries of all kinds.
Have you thought about what predictive analytics can do for you?