Average is over are the popular words of a New York Times writer, Thomas L. Friedman. He suggests that average skills no longer enable an individual to earn an average pay, and ordinary services will never help an organization to survive and thrive in today’s era of heightened global recession and competition.
The real motive of doing marketing is all about discovering why consumers need your product or service. And, it certainly covers several facets of prediction such as what do people need or want, and how that can be related to your consumer product or service. This is known as predictive analytics– the skill of scrutinizing a large amount of data and making use of information to work out what your consumers are in need for.
According to an independent survey by Peppers & Rogers group, the expectations of consumers have augmented by 59 percentages, and the average consumer’s ability to have it say regarding their experience (both good and bad) with a product or service via social media platforms by 37% percentage. These figures can be decisive for businesses, those who pursuit to make it big in their potential consumer base.
- Creating a single consumer view
Nowadays, creating a single customer view has gone a lot more farther than the name, age, and contact details. In the era of digitalization and stiff business competition, understanding the personality as well all their personal details of your customer has become absolutely fundamental to take the quality of business-and-consumer interaction to another level of satisfaction and excellence. Combining single customer view with predictive analytics, to predict consumers’ next move, before they know what it is, is compellingly precise. Knowing your customers better than they know themselves is very helpful in Creating a single consumer view!
- Get better insight of your consumers
Tech and e-commerce giant, Amazon, in the year 2014 took predictive analytics to new levels of worth for businesses by patenting the idea of boxing and shipping products that is expected consumers to buy based on the purchase and search history. Then, if the consumer decided that they actually need the item, they can easily pay for it. Although, such an idea might have lead to a number of unwanted shipping and returns for Amazon, but this e-commerce giant seems willing to take the hit in order to improve its profits.
- First time buyer
Predicting the likelihood to buy allow you to figure out how much discount you should allocate to a certain first-time buyer because someone, who is already more likely to purchase won’t need an exclusive coupon as a consumer, who is still in dilemma. This model has evolved with time making it better and précised. For example, Arcelik, a European home appliances brand maintains a call center where customer support executives are presented with a list of consumers, those who are likely to purchase a washing machine within the next two to three months.
These benefits of investing time and money on predictive analytics are a mere a glimpse what this new digital management tool, there are much more to be had.