A successful company has customers at its core. Long gone are the days of one-size-fits-all advertising and competition based solely on price. If you want to get –and keep– customers, you need to be interacting with them and building relationships on a one-to-one level.
Predictive analytics is a branch of advanced analytics that is utilized to predict future events or results. It integrates various techniques from data mining, statistics, modeling, machine learning, and artificial intelligence (AI) to process and analyze various data sets for the purpose of developing predictions.
In other words, predictive analytics analyzes patterns based on historical and transactional data that can be processed further for identifying future risks and opportunities.
The steps in the predictive analytics process are:
- defining outcomes
- data collection
- data analysis
- and model monitoring
How can data analytics change your business strategy?
In short, data analysis can help you reshape your interactions with customers, market more effectively, and ultimately drive more sales for your company.
- It enables segmentation:Segmentation involves dividing up customer data –for example relating to age range, location, shopping habits, or product usage– and grouping similar data together.
- It promotes product development
- It encourages agility
- It enables disruption and innovation