Whether your business makes medical supplies, or you run a multi-national accounting firm, predictive analytics is necessary. In order for every business, marketing professional and layperson to be able to use predictive analytics, it needs to readily available. However, before we explore why mainstreaming predictive analytics for the masses is important, we first must understand exactly what it is and why it’s crucial.
What is predictive analytics?
Predictive analytics is used to forecast an outcome that can lead to better business decisions, stronger revenue streams and to help a company grow. Through data mining, modelling, statistics, machine learning and other AI (artificial intelligence) systems, future predictions can be made to oversee everything from how a business markets their product/service to how they streamline their manufacturing process.
Why is predictive analytics important for all businesses?
To run a successful business, no matter the size, you need to plan for the future. Being able to anticipate problems and nip them in the bud before they become an issue is a large part of the role predictive analytics plays. Besides problem solving, predictive analytics is important for all businesses because it can:
- Catch fraud through pattern detection: By combining different analytical methods, predictive analytics can detect current abnormalities and prevent criminal behaviour. Predictive analytics will uncover vulnerabilities within your business model that could lead to fraudulent consumer actions and cybersecurity breaches. This is especially effective if you run a bank, mortgage or loan company, or online retail store.
- Enhance marketing efforts: Predictive analytics can determine exact consumer purchases and responses that will let you tailor your marketing efforts to your current clientele and attract future customers. With predictive analytics, each consumer’s behaviour will be tracked so you’ll know who’s buying, when they’re buying and how they’re buying.
- Improve operations: Your company will be able to function more efficiently if you can predict what the future holds for it. You’ll be able to better manage your resources, forecast inventory and keep up with the market your business operates within.
Why is mainstreaming predictive analytics a good thing?
Currently, predictive analytics is a specific process done by the most skilled data scientists. However, that is going to change with companies who are aiming to bring predictive analytics to everyone. With accessible and affordable predictive analytics programs at our fingertips, everyone from a company’s CEO to a mailroom employee can use data to streamline their work process. When you can predict the future easily through an easy-to-use analytics program, everything from schedule making to inventory allocation becomes much easier.
If you’re looking for more information on this topic, please consult with our team of specialists. You can contact us by phone or via the form on our website.