With today’s enterprise software you no longer have to take a shot in the dark at decision making. Regardless of your organization’s size, industry, or the products and services you offer, valuable data is generated with each customer interaction that can be tapped now for sustainable competitive advantage. How is this achieved?
By using predictive analytics, you’re able to learn from experience by extracting information from data and then using it to predict future trends or behaviors. Armed with this information, you can make smarter decisions and take thoughtful action with your target in plain sight.
If you’re considering predictive analytics or are looking to advance its use for your business, take a look at Seven Reasons You Need Predictive Analytics Today. This white paper by Prediction Impact Inc. details “the seven strategic objectives that can be attained to their full potential by employing predictive analytics.” In summary, they are:
1. Compete – Get a unique competitive advantage and learn competitors’ weaknesses before they do. Using a predictive model generated by your data, you have a proprietary source of business intelligence to help you generate sales and retain customers. This also enables you to identify microsegments of customers who choose your company compared to your competitors, letting you know where the competition falls short.
2. Grow – Predictively score each customer for sales-related behaviors and use the results to drive enterprise operations across customer-facing activities in sales, marketing, customer care, and more. Cut costs by pinpointing which customers to include in direct marketing campaigns or incentive programs.
3. Enforce – Increase fraud detection by scoring and ranking transactions with a predictive model. For added security, predictive analysis also gives you visibility into virus exposures, hacking intrusions, and other criminal activity.
4. Improve – Produce and deliver your product or service with increasing effectiveness. Predictive scoring helps manage risks; improve product manufacturing, testing, and repair; and advance central enterprise functions in various industries for supply chain optimization, HR performance, political constituent scoring, and more.
5. Satisfy – Exceed customer expectations by delivering them what they want, when they want it, securely and for less. With predictive analytics, your marketing campaigns are specifically targeted to the right customer. You deliver better products and services with improved core business capacity.
6. Learn – Get more out of your organization’s business intelligence than what happened in the past. Predictive analytics technology enables you employ the right model so you can use this data to learn from experience. Make use of social data and unstructured text in formulating predictions.
7. Act – Know when and how to take action with your customers with insight into each customer’s predictive score. Now you’ll know when to call, e-mail, offer incentives, and make other timely operational decisions. Gain strategic insights by inspecting the model’s internal pattern or rules.
This is just a summary of the many ways you can increase your organization’s competitive advantage with predictive analytics.