How Can Predictive Analysis Help My Business?

As CEOs, have you ever felt that you could perform better and derive better results from your team if you had the power to foresee the effects of and reactions to your business strategies, especially social media strategies? Nine out of ten times, the answer is yes, isn’t it? 

So, the big question is, how can we get that still elusive but highly exclusive ‘power to foresee’? The answer is Predictive Analysis. Wikipedia defines Predictive Analysis as a process that “encompasses a variety of techniques from statistics, modeling, machine learning and data mining that analyze current and historical facts to make predictions about future events.”

 

Let me simplify this further. Using complex mathematical and statistical methodologies, Predictive Analysis allows organizations to scrutinize their enterprise’s customer data – both existing and current, and relating it to customer actions – to find a distinctive and definite recurring pattern in customer behavior. Based on the scrutiny results, a set of characteristics (called predictors) are identified. These specific predictors guide and help businesses to extract essential business insights and guide their future decision making. 

 Where Is Predictive Analysis Useful?

Predictive Analysis is especially useful in those business verticals which have to deal with large volumes of customer data like telecommunications, financial institutions, insurance companies, retail, healthcare, travel etc.

Benefit for Organizations

· With Predictive Analysis, organizations become more confident because they have the power to predict future business scenarios and take appropriate actions to tackle the said scenarios. 

· Relying on Predictive Analysis, organizations can do two things at once – predict problems or issues and also be armed with solutions for the problems.

·   Enhance Customer Loyalty. Find customers displaying similar traits and characteristics and group them and offer them those services and products in line with their requirements.

·  Improve Products. Identify faults in products and services early and prevent it from escalating.

·  Use the forecasting abilities to beat competition.

·  Identify new business opportunities, new customers and thereby expand your market reach. 

·  Up-sell and cross-sell.

·  Reach business goals easily, meet the desired numbers, increase profits and gain more revenue.

When used correctly and optimally by an organization, Predictive Analysis transforms that organization into a Smart Enterprise. It  yields a ‘power to predict’ whereby the said organization can implement efficient business practices, enhance product development process, strengthen customer relations and most importantly reach goals and make profits. 

We, at Shout Analytics, an advanced social media analytics product, make Predictive Analysis possible for businesses. To know more, write to us at info@shoutanalytics.com