Why Companies Are Using Data Models & Why You Should Too
Predictive analytics is allowing both SMEs and large organisations to become proactive and forward-looking through the anticipation of outcomes and behaviours, based on the collation of data. Prescriptive analytics can be taken one step further. Based on predictive analytics, prescriptive analytics conducts the optimal decision-making to provide suggestions for businesses to capitalise from their predictions or protect themselves from any arising implications. These tools help you gain a competitive advantage by discovering patterns in data and going beyond knowing what has happened, to anticipating what is likely to happen next.
Predictive analysis applications are used to achieve the CRM objectives which drive marketing campaigns, sales targets and customer services. This analytical customer relationship can be applied throughout customer life cycles, right from customer acquisition, relationship growth, retention, re-targeting and win-back strategies.
By implementing predictive modelling software, businesses have the ability to automatically determine risk within any given scenario. For example, in finance, the model predicts the best portfolios to maximise the return on investment (ROI) and deliver probabilistic risk assessments with the aim of yielding accurate financial forecasts.
Knowing what your customers want is essential in marketing. With the incorporation of predictive modelling, it allows companies to help identify the most effective combination of product versions, marketing communication channels, timing and suitable content that should resonate and be released towards the appropriate target audience.
By making accurate predictions on future risks and behaviours, predictive modelling can streamline the process of customer acquisition. This can be applied to a variety of industries which handle application level data such as in the medical industry (detecting illness) and financial sector (predicting and detecting bankruptcy).
Within the healthcare service segment, predictive modelling can determine whether or not patients are at the risk of developing certain conditions such as diabetes, asthma and other life-threatening illnesses – supporting medical decision-making and future research.
The model works by analysing consumer spending, usage and behaviours; leading to efficient cross-sales or selling additional products to current customers for an organisation with various product offerings.