3 Ways Predictive Analytics Can Drive Business Growth
In today’s business, analytical insights are transforming corporate strategies and customer expectations. Analytics and Big Data are highly disruptive to some industries, which affect not only the revenue, but also the sustainability of the business models.
Predictive analytics, which aims to generate better outcomes, smarter decisions and actionable insights, can be used to automate operational decisions across marketing, sales and beyond to drive business growth.
Predictive Analytics Increases Business Value
In an increasingly competitive environment, companies must find ways to be more competitive. With the use of predictive analytics such as machine learning algorithms, statistics and data mining techniques, companies can uncover hidden patterns and trends from their data to support critical business decisions.
Predictive analytics can predict a future event or a trend. If your forecast model shows you the trend pattern, you can then take appropriate action. For example, for an insurance company, most standard insurance claims can be paid automatically. However, when a claim in the prediction model shows unusual, or if the claim is the same pattern as a fraudulent claim, the system can flag the claim and automatically send it for special assessment and investigation.
Predictive Analytics Increase Business Confidence
Predictive Analytics enables companies to make smarter decisions in real-time. Predictive Analytics can improve all aspects of decision-making – more confident in making decisions based on the derived insights from the detailed analysis of trusted information.
Predictive analytics helps your company to predict future events with confidence and to make optimal decisions to improve business results. You company can then take the advantage your competitors who still use guesswork to manage their operations.
Predictive analytics models can evaluate complex scenarios and to make real-time decisions quickly and accurately. The more data you collect, the more you can trust the model’s forecasting results.
Deriving actionable information from the use of the analysis promotes a quicker response in rapidly changing business environments. Companies who take predictive analytics through a cultural change will affect every area of the company. The outcome is that these companies can become more efficient and position themselves to play a more competitive role in the market.
Predictive Analytics Increases Return on Investment (ROI)
Predictive analytics can help increase return on investment (ROI) to take targeted marketing campaigns, improved risk assessment and management, and reduce operating costs and actionable decisions.
By implementing predictive analytics, companies can accurately assess the current state of the company, to optimize their operations, and to gain effective market share in the competition. By using the predictive results of the future events as quantitative scores, companies can improve their revenue and improve the business as a whole. Successful predictive models can minimize risk and help businesses and increasing revenue across the board.
Predictive analytics has three important and strategic ways to increase ROI (Business to Community):
- Retail predictive analytics helps retailers create advance demand forecasts
- A predictive analytics solution optimizes pricing strategies
- Inter-store inventory balance can be achieved through predictive analytics
The more these models are deployed and used, the more relevant they become, and the more they contribute to the success of the company. Successful models can usually offer a consistent increase in the longer-term ROI.
