In the current rapid technological landscape, understanding the data is immensely significant. Data acuity coupled with deploying AI solutions promotes cross-sell opportunities, assists businesses to attract, retain and grow profitable customers. Whether you are an owner of a large-scale business or running a small, medium enterprise, a dire need to understand customer intent, what they want to purchase, their likes/dislikes, and the factors that motivate them to buy from a particular store. One can gauge and predict the future buying behavior of consumers through predictive analytics.
Virtual and augmented reality (VR and AR) applications that we use today rely heavily on predictive analytics. You may not even realize this, but you’ve already interacted with predictive analytics when using virtual assistants such as Siri, Cortana, Google Now, and Alexa. These assistants present results (called suggestions) based on the information you’ve provided in the past. Those suggestions are personalized to ensure the delivery of meaningful results in a short period of time.
In the world of customer service, chatbots have become one of the go-to strategies for dealing with customer inquiries. Instead of sorting through a never-ending list of calls, chatbots allow us to deal with individual customers as they reach out to us. The algorithms that run these virtual assistants are learning from each interaction and start to predict what a customer’s response would be. As a result, we’re able to further support the customer without hiring a lot of support staff.
Let’s take the example of Alibaba, an e-commerce giant that has developed a recommendation system that uses real-time data to predict consumer wants. E-commerce Brain is Alibaba’s predictive analytics system, which has provided recommendations or has enabled e-tailers to offer personalized recommendations on their websites. TOTAL GMV of gross merchandise value topped USD155 million within 20 seconds of the opening of Alibaba Group’s annual 11.11 Global Shopping Festival, it crossed USD1 billion in 2 minutes, and the day ended with over USD 30 billion in gross merchandise sales value.
With the emergence of this software, prediction modeling has become increasingly important.
These days, consumers want more than just a discount and a great product. They want an experience. And that’s where the algorithm comes in. Well, it’s actually more than just an algorithm — it’s a system of artificial intelligence powered by big data and lots of machine learning algorithms.
The art is all about how companies create, capture, use, and instrument data to envision upcoming steps/actions for actionable insights. Predictive analytics is slated to revolutionize and unify consumer experience which is dynamically impacting our work, leisure, and overall lifestyle.
Still on the lookout for predictive analytics gains? …
What are you waiting for? Come, let’s explore and dive into the analytics world.