Better decisions based upon reliable data from predictive analytics
Nobody can foresee the future. But it is possible predict future trends and developments, based on data from the past. This is task and target of predictive analytics. It has nothing to do with a gazing into a crystal ball, but instead, detecting patterns and relationships in data, and enabling very high probability predictions to be made about what will happen in the future, as well as about what trends are emerging, based on the history of existing data stocks.
Statistical, mathematical and linguistic processes create genuine added value and customer use from large volumes of big data. Predictive analytics is therefore also one of the central challenges facing digital companies who know that customer experience management is a critical factor for their success. It is already an established element today in such fields as marketing, customer analyses, budgeting, and customer relationship management.
Predictive analytics creates facts
Predictive analytics creates comprehensible and unambiguous facts within the framework of a given model. These must then be interpreted to enable correct conclusions to be drawn, and to provide a solid basis for making important business decisions. The digitalisation of the world means that predictive analytics is becoming increasingly important, particularly for detecting the traces digital customers leave behind in big data in all various channels and contact points, as well as for analysing and predicting their future behaviour and characteristics. Essential information is filtered from the variety and volumes of big data drawn from the widest range of data sources, to form Smart Customer Data.
Predictive analytics enables companies to increase their turnover and profit potential, particularly in the field of customer experience management: Smart Data beats Big Data! Companies today collect huge quantities of customer data. Failure to analyse this data is a fatal mistake, and viewing it all as separate entities is an enormous waste of resources. Predictive analytics, however, makes this data fully exploitable, because it enables future-orientated processes to be developed for dealing with large volumes of customer data. Thanks to its complex formulas, predictive analytics can provide extremely precise evaluations, e.g. to what level sales staff exploit potential in their respective sales fields; or which target groups will have an interest in certain products during the coming years; or which customers are likely to move to the competition. It gives a completely new view of customers and markets, and provides an improved basis for making better business decisions, performing better campaigns, and introducing new improvement measures. Ultimately, predictive analytics becomes a source of inspiration and innovation.
Elementary Knowledge for predictive analytics
To make predictions about your customer’s future behaviour, you need dependable data about their past purchasing behaviour. This can come from big data, as well as other channels, and must be filtered and consolidated appropriately. Therefore, professional information management is necessary to convert it into smart customer data, because successful predictive analytics requires a customer data warehouse containing unambiguous customer IDs, as well as providing you with correctly prepared data.
Uniserv Smart Customer MDM helps you to achieve effective customer data management. With our lean, individually customised solution, you create golden records, and thus have all information about a customer immediately available, no matter where it originates in your company. These golden records are managed in a central repository and data quality tools ensure that the customer data is always up to date, unambiguous, and reliable. Identity resolution arranges similar datasets from different sources to create each individual golden record. Thus, data silos disappear and fragmented data becomes a thing of the past; and you always know exactly which customer has bought what product, and which channel they used to do so. This seamless customer history and known user behaviour also enables you to develop individual offers, and to address them to the right person at the right time.
With Uniserv you generate the elementary knowledge about the behaviour and needs of your customers, necessary for predictive analytics. Enrichment of internal data and incorporation of new and supplementary data sources means that your view of each individual customer becomes increasingly better defined. By predicting probable developments in customer and market trends, you gain the important knowledge necessary for marketing and sales, and are able to make concrete recommendations for controlling future marketing measures and improving future offers. The result is a level of customer experience management that fulfils all your customer’s expectations - and provides a clear competitive advantage over the competition – you could say “really digital”!