Advancements in technology and the expansion of cloud computing allow companies to analyze more data than ever. Consumers are also creating more data than ever recorded in human history. Over 60 hours of video are uploaded every minute onto YouTube. That single statistic is staggering if you consider over 90% of the data created throughout human existence was created in the last 2 years. This massive creation of information will allow businesses to better understand and cater to the needs of the consumer, but only if it is properly utilized.
A great thing about this phenomenon, known as Big Data, is that advances in computing power and shared resources are allowing enterprises to crunch these massive numbers and turn them into meaningful analytics for the business. In fact, one of the most sought after skillsets of companies is that of a data scientist. Below is a list of 5 key ways in which predictive analytics can catapult your business.
1) Increase Customer Satisfaction. If consumer sentiment is properly monitored, businesses can proactively intervene in situations of customer dissatisfaction. Businesses should constantly monitor the engagement and happiness of customers. A single negative comment from a customer to another prospect will be more meaningful than 10 positive customer reviews on a website. Customer analytics should be real-time and not rooted in the past. A real-time view requires predictive analysis of trending customer sentiment matched with expected future events.
2) Create Insightful Analysis for the C-Suite. Predictive analytics will create more value to the C-Suite by providing important insight into financial metrics via Modeling. Using past events, as in traditional budgeting, and matching that with predicted events or trends can create a plausible, futuristic vision of the business. How many businesses have or do you work with that take last year’s numbers and increase them by a flat percentage? Does that type of approach provide accurate insight into the organization? Not likely…
3) Engage with Customers. Technological advances are creating a new breed of consumer and businesses need to be agile in adapting to the needs of this ‘Super Consumer’. Customers are more engaged via smart phones and tablets than ever before and that trend is going to continue. Most people under the age of 30 do not remember a time before the internet. Computers have always been there. The iPhone has been for almost 6 years now and information is continually at a consumer’s fingertips. My mom who was born in 1948 uses an iPad to research and order products. If you had told me that would be the case 5 years ago, I would call you crazy.
4) Adapt and Evolve while Mitigating Risk. The world is changing fast and companies must be quick to adapt to the change. Regulations, rules, tax and labor laws are all changing at a break neck pace. Companies that deploy predictive analytics can see the opportunities and threats on the horizon and properly plan for them to mitigate negative risk and capitalize on positive risk. That may sound counter-intuitive, but risk can be both positive and negative. Positive risk comes in the form of opportunities, which should be amplified to maximize value. In today’s fast pace world, business must adapt or they risk their future.
5) Prepare for the Future. Predictive analytics help to ensure that companies are ready for the changes coming. Through the creation of various models and constant monitoring, companies can review the trends affecting their business and react appropriately. In traditional businesses, companies are constantly looking to the last quarter or last year to determine what to do next. With predictive analysis, you look to the future and identify trends which aid in determining the most plausible scenario for your business to thrive.
The utilization of financial modeling and predictive analytics will continue to evolve and create tremendous value for those organizations that properly deploy it. This can be a costly undertaking, which is why it is important to identify the key metrics by which you measure success. Organizations can either continue to conduct business the way it always has, and risk being left behind, or it can adopt new metrics and analytics for managing the business.
Kraft Enterprise Solutions has long partnered with Adaptive Planning to allow our customers to utilize predictive modeling and are co-sponsoring an event in Nashville on April 25th. This free event goes from 8:00am to 1:00pm. Breakfast and lunch will be provided. Learn more about this event on our website or click here to register.
For more information about Kraft Enterprise Solutions, please visit our website: https://kraftenterprise.com/php/aboutus.php.