Understanding the power of predictive analytics and why your business needs it means switching from analog to digital. It means no more guesswork and further intelligent decision-making. It also means provable outcomes and that is what you need.
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What is Predictive Analytics?
Predictive analytics is the field of data analytics that is mainly focused on determining what will happen in the future. It works hand-in-hand with descriptive analytics. Where descriptive analysis seeks to understand what has happened, predictive analysis uses historical data to map future trends and outcomes.
It uses machine learning and artificial intelligence to map your business’s future runs far more profoundly than simple, logical customer behavior insights (e.g., a chocolate tends to sell well before Valentine’s Day). AI-powered predictive analytics helps uncover trends even the most experienced human researcher would never catch. Predictive analytics is affordable and easy to implement.
Understanding the Power of Predictive Analytics
Below highlights a few core business goals that underline the power of predictive analytics.
Improving Efficiency
Almost every business suffers from minor inefficiencies. There is always a minor issue that could be resolved but you cannot put your finger on how to do it. Predictive analytics does not just help identify real-time growth opportunities, it also enables you to understand how much revenue you stand to lose if you don’t address an issue immediately. Your business ultimately needs troubleshooting capabilities like this.
Risk Management
Risk is an integral part of running a business. Every business decision measures risk against reward. Wise decisions make the correct call and with predictive models, you can significantly improve your ability to make that call. All competent decision-makers use data to inform their decisions and big data has just become a lot more helpful.
Building Business Intelligence
Business intelligence is the core reason predictive analytics exists. Some industries have relatively straightforward business models (e.g., insurance companies) because they benefit from guaranteed demand; therefore, they should have it easy, correct? Ask any roofer if they can sit back and wait for calls from willing customers. Even businesses with reliable customer bases rely on improved business intelligence to outperform their competitors. They cannot afford to forego the advantages of proper dataset management and advanced analytics. The lesson? If businesses with a readymade customer base need predictive analytics for business intelligence, so do you.
Types of Businesses That Use Predictive Analytics
Predictive analytics is a cornerstone of numerous industries. Some industries stand out to make massive gains by adopting predictive analysis ahead of their competitors including the following:
- Healthcare
- Finance
- Insurance
- Transportation & logistics
- IoT companies
- Marketing
You can guarantee that your top competitors are learning to use data appropriately. You need to get ahead.
Wrapping Up
Fortunately, harnessing the power of predictive analytics is relatively easy and inexpensive.You do not need an in-house data analyst with a six-figure salary. What you need is high-quality software and a trusted implementation partner. What you need is dbSeer. Schedule a consultation today.
