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10 really good reasons to use Predictive Analytics

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Predicting the future is a skill many business owners wish they could have. After all, if you could tell what will happen six months from now, you might find that business would be infinitely easier. Of course, this is not possible to such a precise extent. That being said, businesses do have tools at their disposal that they can use to attempt to predict the future, such as predictive analytics. Here are 10 top reasons why you should be using predictive analytics at your business:

Get a higher return on your data investment: Your organization has a significant investment in data–data that contains critical information about every aspect of your business. Today more than ever, you need to get the best return on the data you have collected–and predictive analytics is the most effective way to do this. Predictive analytics combines information on what has happened in the past, what is happening now, and what’s likely to happen in the future to give you a complete picture of your business.

Find hidden meaning in your data: Predictive analytics helps you maximize the understanding gained from your data. It enables you to uncover hidden patterns, trends, and relationships and transform this information into action.

Look forward, not backward: Unlike reporting and business intelligence solutions that are only valuable for understanding past and current conditions, predictive analytics helps organizations look forward. By leveraging sophisticated statistical and modeling techniques, you can use the data you already have to help you anticipate future events and be proactive, rather than reactive.

Deliver intelligence in real time: Your business is dynamic. With predictive analytics, you can automatically deploy analytical results to both individuals and operational systems as changes occur, helping to guide customer interactions and strategic and tactical decision making.

See your assumptions in action: Advanced analytical methods give you the tools to develop hypotheses about your organization’s toughest challenges and test them by creating predictive models. You can then choose the scenario that is likely to result in the best outcome for your organization.

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Empower data-driven decision making: Better processes help people throughout your organization make better decisions every day. Predictive analytics enables your organization to automate the flow of information to match your business practices and deliver the insights gained through this technology to people who can apply them in their daily work.

Build customer intimacy: When you know each of your customers or constituents intimately—including what they think, say, and do—you can build stronger relationships with them. Predictive analytics gives you a complete view of your customers, and enables you to capture and maximize the value of each and every interaction.

Mitigate risk and fraud: Predictive analytics helps you evaluate risk using a combination of business rules, predictive models, and information gathered from customer interactions. You can then take the appropriate actions to minimize your organization’s exposure to fraudulent activities or high-risk customers or transactions.

Discover unexpected opportunities: Your organization can use predictive analytics to respond with greater speed and certainty to emerging challenges and opportunities, helping you to keep pace in a constantly changing business environment.

Guarantee your organization’s competitive advantage: Predictive analytics can drive improved performance in every operational area, including customer relations, supply chain, financial performance and cost management, research and product development, and strategic planning. When your organization runs more efficiently and profitably, you have what it takes.

 

Reference: 10 good reasons to use predictive analytics, SPSS Inc.’s software, www.spss.com/spss

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