The ability to predict future market conditions and to better understand the wants and needs of customers is surely the wish of every entrepreneur. Existing computer systems, large databases and analysis environments such as Business Intelligence BI provide useful information about the current state of affairs. But their ability to help business owners to look ahead is fairly limited. (click here for more on Business Intelligence) Decision makers need to make assumptions about the future based on past events, and that process is inherently imperfect. What would really help a business owner are accurate data-driven predictions of future conditions: Predictive analytics.
The importance of looking ahead with Predictive analytics
Predictive analytics provides decision makers and analysts the ability to make accurate predictions about future events in their markets, based on complex statistical algorithms, applied to relevant data. With this kind of analytics you can predict specific customer behavior such as, for example:
- Which customers are likely to buy product X through channel y?
- Who will respond to specific sales events?
- How much of this product should I purchase and when does it have to be at the stock location?
Predictive analytics adds real business value to companies that are able to use it effectively And the good news is that analytics tools required are already here!
How could this work in your business?
Predictive analytics is a powerful tool that gives decision makers an accurate glimpse into the future and gives sales and marketing teams a better understanding of what customers want and need - information which is very valuable in making tactical and strategic decisions. Until recently, the challenge with Predictive analytics has been that it was very complex to use, and required a team of experienced data analysts to generate practical results. An investment that only the largest companies could afford. Fortunately, in recent years a new generation of predictive analytics tools has been developed that are much easier to use and can be deployed by business users in mid-sized companies on a daily basis.
Improvements in IT hardware and software, the impact of Big Data, improved online access, the rapid proliferation of mobile devices and social media. Developments which all contribute to making Predictive Analytics more relevant than ever as well as practically applicable in the business world. A team of skilled data scientists and statisticians with specialized technology is no longer required to generate useful analytical results.
Ecommerce Result: Specialist in Predictive analytics
What you do need is a clear vision and accompanying roadmap that indicate how to implement these features and benefits of Predictive Analytics in your business and that will integrate seamlessly into the primary business process. Ecommerce Result can help you to take your first steps on this journey. Our services range from defining the Predictive analytics strategy (through workshops), supporting pilot projects to gain experience, to consulting on the integration of Predictive analytics in your organization. With all these services we focus on a clear and timely definition of KPI's so that you are able to determine the progress and success of this application and adequately adjust your course, where necessary.
Feel free to call us for a more information