11 August 2020

Predictive analytics: The power to predict the future

Which time will be best to launch the new product? What is the most effective marketing strategy for the next semester? Is this a good investment, and when will the company get a return?

Every day, in companies, important decisions are made that impact the future and the financial health of the organization. The intuition and opinions that guided business decisions a few years ago are now replaced by reliable and accurate insights, which help decision-makers to follow smarter and more accurate strategies.

Nowadays, Data Analytics and Artificial Intelligence solutions assume a prominent role in business, as they can provide precious insights that leverage the organization and put it one step ahead in the market.

However, Data Analytics not only brings more speed and support to strategic decision-making but also, by looking and analysing your organization’s historical data, as well as the current situation, it is possible to have advanced analytics that allows you to predict future events.

Efficient predictive analytics can change the strategy of any organization making it more adaptable, flexible, innovative and effective. Knowing the market and the consumer in detail is the secret to a profitable organization focused on its objectives.

Using Data Mining, Machine Learning and Artificial Intelligence techniques, predictive analytics allows you to anticipate trends, predict behaviours and identify the probability of future results. Based on historical data, you can make more accurate and well-informed decisions.

Technological solutions make it possible to know and identify patterns, to assist the future strategy, reducing risks to the business and allowing the organization to prepare for more adverse and challenging periods.

For instance, based on the specific customer purchase history and profile, you can predict interests and needs, and recommend products and services that are more personalised and that match what the customer wants and needs at a given time.

Also, with the use of predictive analytics, you can perceive what will be the acceptance of a determinant new product or service on the market, when will it be most accepted and therefore, guide the strategy to make it more profitable and objective. Depending on the sector in which the organization operates, predictive analytics can be used to define prices, design assertive marketing campaigns, identify industry trends, predict demand, detect fraud or atypical behaviour, as well as anticipate and classify the impact of several actions in the business.

What does each organization department gain with predictive analytics?

Marketing

  • Knowing the market trends, tastes and needs of customers or the acceptance of a determinant product or service are some of the benefits that analytics of historical data can bring to the marketing department.  With accurate analytics, it is possible to attract and retain customers with differentiating and personalised strategies, in other words, it allows you to guide, optimise and segment the strategy according to what consumers want.

Sales

  • Predictive analytics helps to identify new opportunities, improve the customer experience and identify possible risks and is widely used to recommend products or services, thus increasing the chances of cross-selling. Higher focus on leads more willing to purchase, development of more assertive sales strategies and forecasting high demand to satisfy orders are some of the advantages.

Finance

  • Predictive models make it possible to allocate resources intelligently and thus reduce costs. Also, it allows you to make investments based on reliable forecasts. With the analytics of history, it can estimate billing amounts, reduce costs and increase revenue. Identify gaps in the organisation’s budget, predict trends, maximise profit are some of the benefits for the finance department.

Production

  • Having a more efficient production line allows you to set more competitive prices and reduce costs. By being able to identify the periods in which you will sell more, you can effectively control stock, storage costs and consequently avoid unnecessary costs and waste. Also, it is possible to predict machine failures and malfunctions, energy and raw material waste and streamline production cycles.

Although predictive analytics is not new, the truth is that companies increasingly use it to create higher competitive advantages and differentiate themselves in the market. Your organization thus becomes more proactive and forward-looking by anticipating results, trends and behaviours.

Transversal to any sector of activity, predictive analytics allows to increase security, to effectively direct strategy and enhance profitability. Through appealing, simple and intuitive dashboards, you have at your disposal a set of forecasts that will help at the time when making decisions.

Knowing the future is unquestionably a powerful asset for your organization. Predictive analytics enables you to detect new business opportunities, trends and market patterns to develop the most assertive strategies, determine new products or services or even recognise which markets you should invest.

Are you ready to know the future and define more profitable and efficient strategies?