Predictive Analytics Consulting – You Have Hit the Right Button!
Marketing has transformed impeccably through the years. Before the trend of eCommerce began, companies used outbound marketing techniques for B2C and B2B to reach leads through the offline medium of TV and Radio.
Predictive analysis for digital advertising has led to a natural conversion of leads into consumers by using the data collected from consumers to create the next marketing strategy. Many businesses are shifting to predictive analysis to upscale their profits and gain pro over contemporaries. Some of the reasons for this are as follows:
- Increase in volume of data
- Faster and much cost-efficient computer systems
- Upgraded software
- Severe economic scenario and requirement for a better competitive market
Definition of Predictive Analysis
Predictive analysis can be elucidated as a part of advanced digital analytics. As the name goes, primarily used for carrying out predictions of futuristic events. Numerous methods deployed for carrying out the analysis, which include machine learning, reading data mining statistics, modeling, as well as artificial intelligence.
These processes or predictive analysis tools assist users in gaining a detailed understanding of the data in hand, and thereby make predictions of how the future consequences will be. In the case of predictive analysis, technology plays an integral role, which helps in deciphering the future events and influencing the results.
For example, big companies and organizations can put into use data relating to historical performance to reach ultimate conclusions, in addition to deciding on the course of action, which can modify the outcomes significantly.
In short, predictive analysis can define as the technique of extracting data from the present one and deciphering the patterns to predict what the future trends would be. However, it only aids in predicting the trends, and not emphasizing what will happen in the future.
How Does It Work?
Now that we have understood what a digital predictive analysis consultant works upon, we will move ahead and elucidate the aspect of how it works in actuality. As mentioned, predictive analysis in digital marketing puts into use historical data for predicting future outcomes.
In a typical scenario, the use of historical data arises to construct a mathematical model that can thereby pick in the essential trends in the future. The model, however, can be used only on the present data with the view of predicting what will unfold in the next step.
Based on the information received, we can predict how the future event will unfold, and based on this; one can bring out actions that are in favor of the future. Additionally, the method also assists businesses and companies to identify their leads and predict who can turn into their potential customers for the future.
Also, who will prove to be highly valuable for their business? Herein, it helps not only B2B companies but also e-commerce organizations in planning their strategies for generating leads and attracting clients but also to retain the existing ones.
Who Uses Predictive Analysis?
When it comes to carrying out predictive analysis for social media trends or digital marketing, there exist no limitations in its utilization. Predictive analysis can be used by any company or any vertical that aims to decrease the risks, streamlining the operations, and thereby up-scaling the profits.
Examples of Predictive Analytics
Herein, we have listed down a few compelling examples to understand the concept in detail:
- The banking sector is one large industry. Thus, a considerable amount of data regarding the user, as well as money, happens to be at stake. Herein is where predictive analytics comes into the picture. It assists in reducing fraudulence, calculates risks relating to credits, and expands the cross-sell and up-sell options as well as aid in retaining valued customers. As per the predictive analytics generated by Commonwealth Bank states, the chances of fraud for a given transaction even before it gets authorized can be done within the first 40 milliseconds before the initiation.
- Apart from using predictive analysis in digital advertising, it has also become a pro in the retail sector. After the initial studies conducted on buying behavior, wherein it is noted that men who bought diapers also tended to buy beer, made retailers analyze merchandising for planning and optimizing prices. It also aided to study how effective were the events, and thereby, concludes if the companies could offer customers appropriate deals. For example, – Staples was able to gain a more in-depth insight into consumer behavior by obtaining a detailed picture of their end-users.
- From predicting failure of equipment to gaining insight into future resource requirements, studying reliability risks, and mitigating safety, the use of predictive analysis has been utilized with full vigor by the oil, gas, and utility sector. One of the pioneer users of this technology is the Salt River Project, a public power utility that is second largest in the US, and Arizona’s largest water suppliers utilize predictive analysis for machine sensor data to predict when will power-generating turbines require maintenance.
- Government sectors have been prominent users of predictive analysis to study the service in addition to suggesting ways to improve services, performance, and preventing fraud. It also renders a better understanding of consumer behavior and enhances cybersecurity.
- Apart from the ability to detect fraud, the use of predictive analytics in the health insurance sector aids in identifying the level of risk of chronic diseases in patients, thereby to suggest remedies. E.g., Express Scripts is known to benefit from using analytics for identifying patients who don’t adhere to treatments, thus aiding them in savings.
- For manufacturers, it helps to identify reasons that lead to failure in production, decreased quality to optimize services, and their distribution. Lenovo is one company which made use of the technique in gaining ideas about warranty which led to a 15% reduction in costs incurred on warranty.
- Bing Predicts a notable example for the Sports sector that used the prediction system by Bing of Microsoft, which is a predictive analysis for social media trends that uses the social media sentiment and statistics for making assessments.
- Predictive analysis also is known to improve weather forecasts by accurately predicting weather conditions since 1980.
- Predictive analysis for digital advertising has transformed splendidly based on how information is processed about business. Predictive analysis in social media trends enables one to track user comments to respond accurately.
Difference between AI and Predictive Tools
When we compare machine learning to predictive analysis, there happens to be a slight difference. Machine learning can be elucidated as a continued process of concepts, and there lies only a slight difference between the two.
Artificial Intelligence is one such system that renders the platform to generate assumptions, test as well as learn newer concepts autonomously. AI can thus be defined as a combination of machine learning, technology, and is used as one of the most conventional methods of utilizing personalized marketing.
Predictive Analytics Tools
When comparing data analytics vs. predictive analysis, the latter happens to be riskier as it deals primarily with aesthetically unearthing future. Furthermore, business intelligence is considered an ancestor to analytics that follows the backward trend searching for the outcome.
This includes: asking questions like – 1) who are the best customers? 2) What happens to be slow days of sales? However, in this era of cloud computing, the backward moving trend is no longer sufficient enough. This thereby brings into fore these predictive analytics tools that render appropriate outcomes.
Garnering the information, we can stay that predictive analysis is going to be a mainstay in most of the industry verticals in the years to come, and hence, the sky is bright, and companies need and heed it right! If you are also in need of a predictive analysis consultant, then you are at the right spot indeed!