At a time when competition is soaring considerably in all domains, leading a successful business requires the strength of a smart predictive approach. With the expansion of digital era, data analysis has become the power hub for any organization. The highly impactful tool is Big Data analytics, which offer you a deep insight into the large pool of data to figure out historical trends, drive experiments and find-out key predictive scenarios. With the power of predictive analytics in your hand, you can effectively explore new opportunity with flagging-out potential business risks. With the help of predictive analytics, a business can enhance the efficiency of the key areas by multi-folds including campaigns, processes, operations and decisions. In this article, we will be exploring the 4 pillars of proactive business approach through the deployment of predictive analytics.
• Customer Satisfaction and Retention – The predictive analytics, over the years, has completely transformed the business approach towards customer satisfaction. It also bears a huge potential for a business when it comes to customer retention. The current era is an era of competitive environment, in which the customers are empowered by the technology that keeps them hyper - connected. Tapping the potential of predictive analytics can help you uplift the effectiveness and performance of your business, in comparison to others who still take the predictive analytics as a technology too advanced to adopt.
Imagine how effective it can become for your business to know the next – best – step to deal with a customer based on the details in customer profile like transaction history, customer’s concerns, their geo-location and other details. In other words, you can raise the bars in customer satisfaction and retention with having deep insights on their likes & dislikes, needs & requirements, location and spending pattern, right time & right communication and much more to explore.
• Optimization of Human capital – Hiring the right manpower on right roles is one of the most essential decisions to lead a successful business. While the traditional approach of hiring relies on just intuition and a few other details, the predictive analytics can prove highly beneficial for an HR executive to identify the patterns that enable improved hiring decisions and effective retention of employees with maximum performance. The analytics can be applied to drive better hiring decisions with integrating intelligence to recruitments. It enables the organizations to uplift the moral of an employee and his contribution in the growth by identifying his suitability for a company role and his alignment with the company culture.
• Fraud Minimization & Mitigation – With the use of predictive analytics tools, an organization can not only detect the frauds but also bear an ability to prevent them effectively. What comes in addition is minimization and mitigation of the potential frauds. For instance, an insurance firm can leverage the predictive analytics by designing a multi-stage predictive analytics process to thoroughly scrutinize the claims. This new age analytics enable these firms to get a deep insight in the patterns of claim data, preventing the frauds optimally.
• Optimizing Revenue and Financial Results – The companies in the domain of consumer products spend a huge amount on trade promotions. However, almost 40 percent of it derives below the expected results. Powered with the predictive analytics, these organizations can offer improved results from ground level by incorporating the smart predictive analytics application in key business areas. The predictive analytics bear the power to enable the firms to devise more confident and precise promotion strategies and execution oriented scenario planning. The other areas where predictive analytics can maximize the results include tactical planning, integrated promotion management, ongoing retail execution and post event analytics. Together all this can contribute significantly in profit maximization.