Understanding market dynamics, be it past, present or future, is critical for every organization. The past can give you vital data about trends but predicting the future is also important for value addition to business decisions. Predictive analytics captures past data patterns, trends and behaviors,and these are analysed to forecast future outcomes, actions and developments with a reasonable degree of reliability. Predictive analytics alsoincorporates what- if-scenarios and attempts to provide possible solutions. In a nut shell, predictive analytics can help organizations foresee emerging market trends and concurrently take calculated risks,within a risk-reward matrix, so that better decisions can be taken for augmented growth.
Why Predictive Analysis is Essential for Your Business?
Predictive analytics harnesses data mining tools to capture signals of incipient customer discontent providing leads for implementation of damage limitation strategies, cherry pick the customers with the highest propensity for augmented value based on shopping frequency, order values, family life-style, etc., define customer segments to which sharp focus messages, special product offers, etc can be communicated and deepen the relationship with the customer through cross -selling and up-selling to the existing customer base. Cost control is an allied benefit of predictive analytics, the system uses life-cycle theory to anticipate the demand for preventive maintenance, the likelihood of breakdowns and the need for replacement thereby minimizing down time. In a hyper competitive market, the twin benefits of customer growth and cost management is bound to keep the company well ahead of the chasing pack.