{"id":158335,"date":"2017-07-14T04:48:00","date_gmt":"2017-07-14T09:48:00","guid":{"rendered":"https:\/\/www.ntegrait.com\/how-to-make-use-of-predictive-analytics-at-your-company\/"},"modified":"2017-07-14T04:48:00","modified_gmt":"2017-07-14T09:48:00","slug":"how-to-make-use-of-predictive-analytics-at-your-company","status":"publish","type":"post","link":"https:\/\/ntegrait.com\/how-to-make-use-of-predictive-analytics-at-your-company\/","title":{"rendered":"How to Make Use of Predictive Analytics at Your Company"},"content":{"rendered":"

This article talks about predictive analytics in detail. It also discusses how it can be used to help an organization succeed. \u00a0<\/strong><\/p>\n

In most companies, the sales team is always at war with the marketing department. The sales team claims it is unable to do its work because of ineffective marketing. On the other hand, the marketing department claims that it cannot be effective since it does not have enough data.<\/p>\n

\"Business<\/p>\n

Most companies have become quite good at collecting data from their customers. However, the data is only as good as how the company is able to exploit it. Most businesses today only collect huge amounts of data, but they fail at making use of it to grow revenues. To make use of big data, a big part of it relies on predictive analytics. This type of analysis allows companies to glean more information about their customers.<\/p>\n

What Is Predictive Analytics?<\/strong><\/p>\n

Predictive analytics is the process of using data, machine learning, and statistical analysis to assess the chances of certain future events taking place. These algorithms used in this analysis come up with a predictive score based on the past.<\/p>\n

The scores are numerical, and they represent the probability of a customer having a certain interaction with the company. For instance, it predicts their chances of making their next purchase at a certain time. This data is then used to inform the organization\u2019s actions in relation to that of a customer. It is the insight from the patterns of customer behavior that can be used to grow sales. However, it is important to note that predictive analytics cannot define the exact behavior of a customer. Instead, it only predicts the chances that it is what they will do.<\/p>\n

Predictive analytics gives you an Edge.<\/strong><\/p>\n

Although the\u00a0use of predictive analytics has tripled<\/a>\u00a0in recent years, only a third of all businesses even consider using it. Thus, if you do decide to make use of it, you will be having an edge on the competition.<\/p>\n

This advantage can vary by industry. For an e-commerce site, the use of predictive analytics can play a crucial role in pricing over time. It can also be used to show the right promotional material to the right target customers.<\/p>\n

It is not just used to show what people will buy. It is also used in determining how effective you will be at their job. In the US military, it is now used to determine how likely it is that a person will be effective in their role. This analysis is based on analyzing data of people who have been successful in the past.<\/p>\n

Even banks and other financial institutions have not been left out. It is thought that the use of predictive analytics has cut the decision making time by about 13 percent compared to companies that do not use predictive analytics. This type of science has proven invaluable to financial experts in the areas of fraud mitigation, collateral management, and risk.<\/p>\n

Best Practices for Using Predictive Analytics.<\/strong><\/p>\n

When coming up with a system for utilizing predictive analytics, some best practices will help you succeed. These practices work well no matter the industry in which you intend to use predictive analytics.<\/p>\n