Many businesses across a number of industries are attempting to use the data that customers leave behind when they interact with the company, be it online, in-store or both. Even though harnessing this data can provide several organizational benefits, many companies still have not gone beyond collecting and storing their data. It isn’t easy to deal with unstructured data but the benefits are rewarding if you do.
Predictive analytics, a method of applying a predictive model to data, learning from the experience of your organization to start predicting future events, like customer actions, is powerful. Aside from optimizing marketing campaigns, predictive analytics can also help to improve your organizational effectiveness and drive successful business outcomes. Here are five ways you’ll benefit from predictive analytics.
1. Boost Confidence
The more you know about a likely outcome, the more confident you will be that the decision you are about to make is the right one. Predictive analytics can give you an idea of every possible probability so your team and your organization can assess the risks, the pursuant actions and the potential ROI to better manage results.
2. Gain a Competitive Advantage
Predictive analytics can enable speed and agility for your organization, which in turn can translate into a competitive advantage. How? The faster you can gain insight, the quicker you take action which then enables you to learn, innovate and pull ahead of the competition. Not to mention that using predictive analytics to create intent-based personalization can improve customer retention and increase revenue opportunities, moving your company to the top.
3. Quell Uncertainties
Uncertainty, the unknown, or fear of flying blind – regardless of the adjective, this is something keeping executives up at night. Whether it’s uncertainty over customer retention or products it can translate into a huge organizational problem – when business leaders are facing uncertainty then decision-making can be overwhelming. Predictive analytics can provide enough insight to solve a lot of business uncertainty and encourage swift decisions based on data.
4. Influence Cross-Functional Collaboration
Organizations that map the customer journey and optimize touchpoints usually rely on inputs from other areas of the organization – as data should not be siloed, neither should departments. As organizations experience the impact of using predictive analytics in marketing, the scope and applicability of enterprise data widens, essentially creating a customer-centric organization where cross-functional collaboration becomes the norm not the exception. And as the organization transforms itself into an advanced analytics culture, the insights generated through predictive analytics can eventually be distributed throughout the organization to one-day influence design or production.
5. Optimize Marketing Productivity
Marketers are under pressure to drive effectiveness as well as efficiency – the two products that define marketing productivity. With predictive analytics, marketers have the ability to see trends and outliers, inform key insights and enable better decision-making. Predictive analytics empowers marketers to be better at what they are already doing, to identify individuals who have the highest propensity to buy and to give marketers an advantage in optimizing campaigns, lowering the costs and generating better ROI.
Beyond data, predictive analytics can result in a positive impact across the entire organization. The immediate benefits of apply predictive analytics are usually realized first by marketers but, eventually, it can transform the entire organization into data-driven and customer-centric culture.