Predictive analytics are an incredible tool to implement in your business. By taking existing data and statistical algorithms you can learn the likelihood of future outcomes. Predictive analytics can be put to a number of uses in your business including identifying trends, understanding customers, improving business performance, driving strategic decision making, and can even help predict behavior. These results aid in operations, risk management, marketing, and even fraud detection and security. With the growing amount of data available to companies now, it is becoming more popular to take this data,
turn it into predictive analytics, and produce valuable information. Big data has had a big impact on many areas of business and customer analytics is no exception. When you set out to understand your customer, you set out to strengthen your company. Understanding what your customers are going to do is becoming a vital part of being successful and predictive analytics are the best way to gain reliable forecasts of the future. There are three main steps to gaining predictive analytic:
- To get started with predictive analytics, it is important to identify the problem you want to solve. Ask yourself this question: What do I want to know about the future based on the past?
- Once you have finalized the problem you want to shed more light on, it is time to get the data. The data you use to predict future outcomes can be gained from a number of places including third party information, transactional systems, sensors, mobile apps, social media, call center notes, weblogs, and even integrated software. This step of the process can be tedious and time-consuming, but without good data, you will not gain accurate outcomes. Because there is so much data out there ready to be put to use, have someone who is experienced in data management help you with this process.
- Now that you have your data it is time to create a model that can put it to use. Some easy-to-use software applications exist to aid you in this process but you will still need to have a data analyst to finalize the model and make sure it is the most effective one for the results you want to yield.
Getting your predictive model to the point where it can be used takes the expertise of a couple of specialized individuals. Although this entire process is driven by technology, you need to take a team approach to getting it off the ground. You will need to have someone who understands the issues your business is facing and how a solution could impact your company, someone who can understand the right data to create the model, and an IT specialist to deploy the model. All of these individuals need to be able to clearly communicate their expertise to the others. By utilizing predictive analytics, you stand to gain insights that can strengthen your bottom line. You can better design programs or products and align content to help you customers the way they need and want to be helped.