Predictive analytics is categorized as advanced analytics, used in making predictions about unknown events by historical, transactional and data which is valid in the present. It allows enterprises and businesses to take rational decisions by anticipating data through organized and systematic techniques rather than assumptions, such as:
- Why and what that happened?
- What is happening now?
- What is going to happen in future?
Once the objectives of the project are defined and relevant data has been collected, it is analysed to derive proper conclusions and implications, through statistical analysis which proves the hypothesis and evaluates the data by multi model perspectives.
Predictive analytics Transformation
Predictive analytics have transformed the Customer Relationship Management (CRM) through marketing campaigns, sales, and customer services. It has helped to understand how consumers behave in different market scenarios and their psyche behind consumption patterns.
- What motivates people to choose one product over another?
- How individual differences and personal factors affect people’s buying choices?
- The extraneous variables such as family, friends, media and culture.
- How should marketers effectively reach out to their customers and what would be the correct predictions?
The organizations understand target audience in aspects of age, financial status, gender, etc, and aim to create better products for the consumers. This enhances consumer’s interest in the brand name of a particular company as they become accustomed to their facilities and develop ‘brand loyalty.’ The company’s brand image starts offering range of products of the same brand name such as Godrej toiletries, almirah, lockers and now housing projects.
The enterprises also analyze the attitudes of the target population through rational and emotional appeal. Example, advertisement of pressure cooker for cooking food may point out that this would save fuel and is much economical. Also, emotional appeal done through involvement of family and other related factors such how the product preserves nutrition and health of family.
Predictive Analytics observed in various scenarios such as:
- The spending pattern of a consumer is at its peak in the first week of month when they receive their salary. The sales of malls, departmental store increase and consumers thrive for household consumption expenditures.
- During festivals, special shopping discounts offered by the companies as they target both economical and emotional sentiments. . Eg: Krvachauth, Dhanteras and Akshytrtitya, provide easy installment purchases. And in Diwali there are ads which promote sale of new homes and paints.
- The IPL Matches have also increased sales of Swiggy and Zomato. As these applications have designed schemes keeping in mind that less time is spent on cooking. And customers can bet which team would win for extra cashback.
- When students await their results, private tuition and managers introduce mirage of advertisements in all the newspapers. Focusing on the percentile and number of students with distinctions.
- Even wedding season predict consumer behavior and make sales regarding makeup, jewellery, décor, lavish parties and drinks.
Thus, predictive analytics has changed the trends of marketing in times of globalization. And aims to enhance the experience of consumers as well as the company’s profits through practical means.