Elevate Your Brand & Drive Growth With Our AI-Optimized Solution
Data is the new oil.
Heard that one before?
The engine of business runs on data.
Everything from manufacturing to e-commerce is data-driven, and since the rise of commercially-available AI, predictive analytics have emerged as a powerful tool for gaining a deeper understanding of customers, and making decisions based on all of this.
When historical data is partnered with AI, companies can use machine-learning techniques to accurately forecast client retention in a B2B setting. What this does is allow companies to focus marketing efforts on potential lost clients as early as three months in advance.
Firstly, what is predictive analytics?
Well, using the combination of statistical techniques, machine learning, and data mining, predictive analytics takes current and historical data to make predictions about future events relevant to the data.
While this can be used across different industries and different departments… specific to customer insights, this allows you to:
Predictive analytics helps organizations gain valuable insights, make smarter decisions, and fuel business growth by enabling proactive planning, better decision-making, and efficient resource allocation – so why would you want to miss out on this?
The success of your efforts might depend on how well you’ve segmented your potential customers, or existing customer base, and then how you’ve tailored each effort to fit their needs, their wants, and their overall approach to pursuing the buyer’s journey.
Using predictive analytics, companies can segment their customer base with certainty and accuracy. More times than not, the data models produced for customer behavior, demographics, and past purchase history will be focused so that the business can create targeted marketing campaigns and personalized experiences.
You can take our word for it—we won’t complain—or you can look at a recent study by Forrester Research which found that companies implementing predictive analytics for customer segmentation saw an average of 21% increase in conversion rates and a 19% boost in customer retention compared to those using traditional segmentation methods.
Regardless of the size of your business, churn rates are still something you need to keep an eye on.
With predictive analytics, you can keep a sharper lens on customer retention by identifying early warning signs of potential churn. With your newly found insight, you can take proactive steps to retain the “at-risk” customers.
A study by Bain & Company found that increasing customer retention rates by just 5% can increase profits by 25% to 95%. Predictive analytics plays a crucial role in achieving this by enabling businesses to:
While we’re on the topic of customers as a whole, we should mention the key role predictive analytics can play when understanding insights into customer preferences and overall market trends.
What can you do with this?
Simple. You can now begin to make data-backed product development decisions. By analyzing customer feedback, usage patterns, and market data, businesses can predict the future needs of their customers and build out products that meet those needs.
There’s no need to read “too deep” into this. It’s best to start today, right?
The best way to successfully leverage any form of predictive analytics is to just do it. Just kidding, we’re not Nike.
In all seriousness, you should follow some of these recommended steps:
Your customers—and converting your potential customers—will always be the livelihood of your business.
Understanding them, and how they behave, is key to your successful growth, and using predictive analytics to drive that is no longer some esoteric thing; it’s a necessity for better metrics.
By implementing the power of data and advanced algorithms, companies can gain a better understanding of their customers, anticipate their needs, and deliver personalized experiences which lead to better conversion rates and retention rates.
As our tech evolves, the potential predictive analytics has to transform customer insights grows too. Businesses looking to take advantage of such tools now will be better set up for the future.
Don’t miss out, reach out today… We’d love to help.
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