By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData Collective
  • Analytics
    AnalyticsShow More
    construction analytics
    5 Benefits of Analytics to Manage Commercial Construction
    5 Min Read
    benefits of data analytics for financial industry
    Fascinating Changes Data Analytics Brings to Finance
    7 Min Read
    analyzing big data for its quality and value
    Use this Strategic Approach to Maximize Your Data’s Value
    6 Min Read
    data-driven seo for product pages
    6 Tips for Using Data Analytics for Product Page SEO
    11 Min Read
    big data analytics in business
    5 Ways to Utilize Data Analytics to Grow Your Business
    6 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: 5 Applications of Predictive Analytics
Share
Notification Show More
Latest News
cloud-centric companies using network relocation
Cloud-Centric Companies Discover Benefits & Pitfalls of Network Relocation
Cloud Computing
construction analytics
5 Benefits of Analytics to Manage Commercial Construction
Analytics
database compliance guide
Four Strategies For Effective Database Compliance
Data Management
Digital Security From Weaponized AI
Fortifying Enterprise Digital Security Against Hackers Weaponizing AI
Security
DevOps on cloud
Optimizing Cost with DevOps on the Cloud
Development
Aa
SmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Analytics > Predictive Analytics > 5 Applications of Predictive Analytics
AnalyticsPredictive Analytics

5 Applications of Predictive Analytics

joshalthuser
Last updated: 2017/09/01 at 11:19 PM
joshalthuser
5 Min Read
SHARE
- Advertisement -

What’s in a name? For predictive analytics, quite a lot the name tells you the basic premise of what the practice hopes to accomplish. Predictive analytics is about using existing data about past events to put the present in context, and forecast potential future events and how to handle them. In other words, learning to recognize a pattern. If Action A has resulted in Outcome B in 80% of previous scenarios, and Action A is happening now, then there’s a strong chance that Outcome B will follow. In this way, it’s not so much about seeing into the future as it is about making educated guesses based on previous data. The more data you have, the more reliable a guess you can make.

Contents
Customer RetentionInsight into the Sales FunnelAssessing RiskSales ForecastingCrisis Management

There are quite a few ways that this technique can be applied to how you conduct business in order to make informed decisions and stay ahead of the curve. Here are five ways you can put predictive analytics to work for you.

- Advertisement -

Customer Retention

Why is customer loyalty so important? After all, if you can replace customers who terminate your services with new ones, have you really taken a loss at all? Actually, yes—acquiring a new customer is almost always more expensive than retaining an existing one. While it’s always good to be converting leads into new customers, it pays to keep the ones you have, too. So how do you prevent losses? By looking at data regarding previous customers who have left, you can use predictive analytics to flag those clients who are exhibiting behaviors indicative of the same potential outcome—empowering you to address concerns before they become major issues, so you can drastically increase customer retention.

Insight into the Sales Funnel

Getting into the mind of the average lead can be a tricky task at the best of times, but by using predictive analytics, you can create a behavioral model of their journey through the sales funnel, and what individual actions—returning to the site repeatedly, for example, or browsing related products—have to say about their intent to purchase.

More Read

How To Successfully Use Data For Your Email Marketing

5 Important Ways Artificial Intelligence Improves Sales
6 Data-Driven Marketing Strategies That Are Revolutionizing Sales
Big Data Can Help You Amplify Your Sales In 2019
7 Big Data Tools To Monitor Employee Performance

Assessing Risk

Not all applications are sales-related. Any scenario where insight into potential outcomes can guide the decisions made by you and your team is a good candidate for predictive analytics. Predictive algorithms are a valuable tool in discerning the risks involved in a particular investment or another course of action. By comparing the conditions of the present against historical figures to identify risk factors, you can tailor your decisions to mitigate risk and ensure success.

Sales Forecasting

Forecasting sales figures in advance is a little bit more complicated than just expecting a big boost around the holiday season (though you should never neglect it). Everything from the value of the dollar and the cost of living to time of year, weather trends, and even politics can have a vast impact on the sales landscape. An individual analyst may be able to model a forecast based on a few key factors, but a comprehensive and data-driven predictive algorithm has the potential to factor in everything under the sun.

Crisis Management

Every company is unique, and faces unique challenges—but these unique challenges are little more than a new combination of a set of finite factors. So while you might not immediately think of using predictive analytics to help your business out of a tight spot, the right algorithm could help you make sense out of a whole mess of data that previously appeared meaningless. These insights can help navigate difficult financial times, putting you head-and-shoulders above the tide and giving you the tools to come out stronger than ever.

- Advertisement -

There’s an old adage that knowledge is power, and in the world of business, this proves true no matter how cliche it might sound. Those companies that can take raw data and turn it into actionable intelligence will thrive. Going forward, predictive analytics will be a major player in turning knowledge into power.

TAGGED: customer retention, forecasting, management, Risk, sales
joshalthuser September 2, 2017
Share this Article
Facebook Twitter Pinterest LinkedIn
Share
- Advertisement -

Follow us on Facebook

Latest News

cloud-centric companies using network relocation
Cloud-Centric Companies Discover Benefits & Pitfalls of Network Relocation
Cloud Computing
construction analytics
5 Benefits of Analytics to Manage Commercial Construction
Analytics
database compliance guide
Four Strategies For Effective Database Compliance
Data Management
Digital Security From Weaponized AI
Fortifying Enterprise Digital Security Against Hackers Weaponizing AI
Security

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

You Might also Like

Best PracticesData CollectionExclusiveMarket ResearchMarketing

How To Successfully Use Data For Your Email Marketing

7 Min Read
AnalyticsArtificial IntelligenceData ManagementExclusive

5 Important Ways Artificial Intelligence Improves Sales

6 Min Read
data-driven marketing
Big DataExclusive

6 Data-Driven Marketing Strategies That Are Revolutionizing Sales

9 Min Read
Big Data and Sales
Data VisualizationWeb Analytics

Big Data Can Help You Amplify Your Sales In 2019

5 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence
AI and chatbots
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US

© 2008-23 SmartData Collective. All Rights Reserved.

Removed from reading list

Undo
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?