Understanding the market and its expectations is a critical aspect. There is a need to study and create insights about key target markets and accordingly design strategies.
Enterprises are looking for tools to make real-time decisions by consolidating data from different communication channels like internal applications, social networks and other such devices. By using the information obtained from these digital sources, enterprises can avail strategic insight through predictive analytics.
Predictive analytics using digital technology and cloud:
- Internet of Things: IOT can automatically record real time data through devices like sensors, smart phones and others and store them in cloud based servers. It uses this information to automatically predict & analyze product failures, quality degradation patterns and detect future failures.
- Big Data: Big data can automatically record large volume of structured and unstructured data in real time. Enterprises use this data to evaluate statistical correlation and apply propensity modelling to create demand and need based segmentation. It will also allow advanced attribution forecasting algorithms through permutation and combination of data. This information will further help to analyze, predict and deliver customized services.
- Web Analytics: In the modern day of e-commerce, digital channels like company website and mobile applications are the key sources of communication with the customer. Predictive analysis tools make use of this information gathered from multiple locations using different cloud computing techniques which helps to understand customer’s needs, purchase decision criteria, likes & dislikes and price patterns.
- Natural language processing: Digitization helps to gather large amount of real time customer experience data using different cloud platforms. Predictive analysis tools such as sentiment analysis, topic analysis and clustering of documents; process this information to design best practices for responding to customer needs.
- Revenue enhancement: Enterprises are looking to enhance customer experiences and at the same time generate more revenues by providing better options. By using mathematical models of predictive analysis, enterprises calculate accumulated sales during the customer’s entire transaction cycle and accordingly offer add-ons.
Data digitization and Predictive analysis to improve business performance:
- Makes use of real time data to know current trends and enable data driven responses
- Differentiates the critical information from the trivial
- Analyses past performance to improvise future marketing strategies
- Uses propensity scoring to determine the best target population
Enterprises today have digital transformation at the center of their corporate strategy, for developing actionable insights from the core. The aim is to gain smarter and more accurate insights at a faster pace than their competitors which helps to translate those insights into action to improve business.