Predictive analytics is about acting rather than reacting, filtering the signal from the noise and looking ahead with confidence. And let’s remember, the voice of the customer is by no means limited to quantitative data – also called structured data. Nor is it limited to internal company data. So, what are we really doing with the technology? Once we pull all the data together, we can begin to categorize the processes that need to be taken to hear the voice of the customer. The processes may include empirically derived models for predictive or prescriptive analytics.
The results are that you can better predict customer preferences and buying patterns. Although our goal is to see the customers as individuals, patterns may emerge from the data that may give you some additional insight into clusters of customer types that might for example receive a certain offer.
Customer contact patterns are changing – there has been an explosion in contact channels. And people are more comfortable sharing so much about themselves, by and large.
They are comfortable because they understand the dynamic between the information they possess and the value that they expect in return. But they expect personalization and customization in return for their information.
Next Best Offer
Well if you know the individual and you know their buying patterns, and you know what they might need next, you begin to predict what they will do next. This gets us into the world of predictive analytics.
Next Best Action
A related trend is Prescriptive Analytics. Some might think that it’s the same thing as Predictive Analytics. Well really, it’s not.
Think about Prescriptive Analytics within the context of Next Best Action. Prescriptive Analytics is just that – how can we prescribe to you – not just offer something to you – but prescribe to you what you ought to do – and it may not be in service of commerce but it may be in service of enhanced customer experience.
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Changing consumer behaviors and innovations in big data, artificial intelligence, and machine learning—chief marketing officers and their peers must transform how their organizations go to work.
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As we know, personalization makes our customers’ lives better and increases loyalty by delivering messages that are fine tuned to anticipate what customers really want.
Capturing value from personalization, however, requires more than technology. It requires an approach that brings the right people at the right time to move your initiatives forward pragmatically.