Industry experts are of the conviction that no business should procrastinate from using predictive analytics as a part of their strategy. If you are wondering why it’s because predictive analytics can accomplish several tasks which humans cannot.
What Is Predictive Analytics?
Predictive analytics is the use of data, statistical algorithms and machine learning techniques to diagnose and propose future outcomes based on historical data. Simply put, it helps you to dig deeper into the information you have in the present to forecast what could happen in the future.
From analyzing an enormous amount of data to deriving recurrent patterns in them that could help businesses or marketing professionals achieve targets, the applications of predictive analytics are many.
Below Are 5 Reasons Why Predictive Analytics Matter:
Organizations are turning to predictive analytics to increase their bottom line and competitive advantage. Some of the most common uses include:
Predictive Analytics Aid To Foresee Future Trends
Any good business would invest a considerable amount of time in planning and strategize so that pitfall can be avoided in the future. Predictive analytics gives you an upper hand by providing insights into the present data so that the growth of your business can be calculated.
Pave Way For Automation
From following up with potential clients to keeping track of business objectives, predictive analytics helps reduce the chances of human error by automating various steps. This means your business executives can make time for more face-to-face visits with customers.
Analyze Success In New Markets
Even before you make a new move regarding your business, you would need to do a few test runs. In the past, experimentation would have been impossible without getting your hands dirty. However, with predictive analysis, you can determine whether a new market or target group is worth your time even before you hit the ground.
Improve Collaboration Between Teams
In large corporations, there exists a huge tendency for teams to work in silo. Especially sales and marketing teams show poor collaboration and rarely make time for a conversation that prioritizes the wellness of the company.
Collaborative predictive analytics helps teams get automatically notified about new developments in the business. This leads to better transparency between teams when it comes to decision-making. As with anything data-oriented, different perspectives with common goals will forge a path for improvised business solutions.
Enable Fraud Detection
Cybersecurity is a growing concern particularly in an age where data breaches have created much furor. When predictive analytics methods are employed businesses can use pattern detection to spot abnormalities, prevent criminal behavior and avoid persistent threats.
Examples Of Real-World Applications Of Predictive Analytics
Predictive analytics is not a futuristic thing. In multiple ways, it has been operating in our daily lives. Below are some examples of its real-world applications:
- All kind of weather forecasts from next day to month or season is based on a distinct prediction model.
- In trading and stocks, any future rise or drop in shares is also an application of algorithm-based trading.
- In retail, almost every organization uses predictive analytics to make different marketing tactics to maximize their revenues.
- In e-commerce industry algorithms are used to predict customer behavior based on their past shopping trends
- Tentative election results can also be predicted based on voting behavior in a constituency. That’ s the reason why political parties hire data analytic agencies to help them design their propaganda accordingly so that they win the majority.
Predictive analysis is here to slay and stay. This demand has led to the need for skilled professionals who can break down data and derive meaningful insights from it. Corporate giants worldwide are adding more and more data analysts to their workforce. Unfortunately, there is still a huge deficiency of skilled professionals. If you are keen on breaking into this space, the best way to kickstart would be joining this course from Acadgild. Go ahead, seize the opportunity and own the future!