You will probably know that there was a time when predictive analytics was quite an unheard term, and professionals and mathematical enthusiasts literally had to fall on their feet to convince the business owners why implementing it will act as a booster for their business. But now the scenario has changed drastically and the millions of dollars that are getting invested by big entities in business analytics now include predictive analytics in particular.
What is Predictive Analytics?
In nutshell, predictive analytics is nothing but foretelling the future. It talks about what will happen, when, why, how can it be sorted out, and so on. However, it is considered as a scientific discipline now rather than business discipline because it makes use of logical data, established metrics and past records to make the predictions.
Key Performance Indicators of Predictive Analytics
A simple question will answer why you actually need to incorporate predictive analytics in business planning: What is the primary target of your business? Your answer will certainly attract the attention of your customers and increase your salability as a consequence. Thus, as a part of the process of predictive analytics, professionals take into account the key performance indicators that include plethora of metrics. They include:
- Loyalty and satisfaction: Experts study whether the product and its after-sales services have satisfied the customers and whether customers are likely to continue giving business to the entity or not.
- Resolving issues: If post sales, any customer experience any technical or non-technical issue, it must be resolved immediately. So, a service team needs to be kept ready with a logical guess work of the probably issues that may arise in order to continue enjoying customer loyalty.
- Productivity: Professional analysts collect data related to factors like volume of demand, handling time, adherence to schedule, deviation from the predicted information, etc. in order to make a full proof future prediction on the capacity of a firm and its probabilities of success with the available resource.
Thus, any novice can infer that keeping these pointers in mind, analyzing the established data and making predictions is helping firms to create a customer friendly ambience. While estimation of probable hurdles is helping business to take prior steps of prevention, the predictions are also helping them in identifying the possible areas to tap in time. Thrust is also there on regular up-gradation of the data so that the predictions are realistic.
The Current Scenario
Although predictive analysis is the spine of business strategy now, foretelling the future of a newly launched product is getting tougher with time; the reasons being shrinkage in life span of consumer products and up-to-the-minute innovations that are flooding the market every day. Big names now look up to predictive analytics not only to have an idea of the consumer behavior and potential markets, but also implementing the same to identify the volume of incoming contacts, future rise in demand and possible trends in demands that will follow so that they can make better anticipation of the future of new products.
What we can conclude is that the future of predictive analytics is bright. It is now believed to bring about a drastic change in customer services rendered by the firms too besides meeting the preferences of the clients. Thus, promises are, as the experts overview it, predictive analytics will include data like texts, numbers, videos and audios besides the ones traditionally used.
Market Quotient is an experienced played in applying various statistical tools to solve business problems. Write us at contact@marketquotient.com if you have any business questions.
