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We are naturally curious beings and are so invested in the future and what it holds for us. Perhaps that is why astrology, horoscopes, palm readers, and their ilk continue to thrive. In fact one of the movies which dwelt upon this subject of predictive analytics in the human context was “Minority Report” where pre-cogs – humans with the ability to see the future – are used to stop crime. It is this curiosity of the future and how it can be leveraged in the business context that has led to predictive analytics gaining momentum. In fact in many businesses, it is an integral part of their growth and marketing strategies.
Let’s see what predictive analytics is, its uses in business and what the future portends.
Inhibitors to a more prevalent Predictive Analytics landscape
Imagine having tons of data– structured or unstructured – lying in storage in different IT systems, across your business. Now imagine using analytics techniques such as statistical modeling and machine learning on historical data to predict future outcomes with precision – predicting weather is a classic case of using data analytics But like any data science, businesses continue to face a few challenges with predictive analytics, however much it continues to gain momentum.
While many businesses are still grappling with these fundamental inhibitors to greater adoption of predictive analytics, data also reveals high adoption. According to the Predictive Analytics Technology Report, 36.8% of high-growth companies planned to invest in predictive analytics, while a Forbes insights report suggests that 86% of companies that have been carrying out predictive marketing initiatives for at least 2 years witnessed “increased return on investment as a result of their predictive marketing”.
The power of Predictive Analytics
The ROI on predictive analytics is not surprising. With predictable analytics, getting answers to complicated marketing questions is no longer in the realm of impossible.
“Will this marketing campaign do well?”,
“Will this customer buy my product or invest in my service again?”,
“Are my customers nestled in this geography, coming from this socio-economic strata?”,
“Will my readers download this case study,”
“What’s the probability of my readers/ users/ customers responding to this email?”
are just a slice of the myriad questions predictive analytics can help uncover answers to.
With the power of prediction, businesses can forecast customer churn, customer lifetime value, customer segments and personas to target, leads to conversion rates, cross-sell and up sell opportunities, and several such marketing criteria that can help in blue printing a strategy roadmap, which eventually will help sell more, gain customer traction and hear the cash registers ringing. Ka-ching!
Predictive Analytics cannot be ignored
Yes, businesses are aware of the challenges in adoption of predictive analytics, but can they afford to ignore it? While predictive analytics has evolved and become integral to businesses today, how will it continue to shape the future of business?
The idea of pre-cogs actually seeing the future and preventing crime before it actually happens is no longer science fiction, but an inevitable possibility. It’s true when they say art imitates life, and predictive analytics is definitely going to underpin the success of business in future.
Lymbyc, being the world's first virtual analyst has proven its mettle in the industry . Be it the "Most innovative Data science Product" by Aegis or "the top 10 emerging Analytics startups in India to watch out for in 2018" by Analytics India Magazine, Lymbyc is making heads turns and making headlines