Every year the business landscape becomes increasingly competitive. The release of revolutionary technology is the result of all this competition and in today’s technology intensive world, your business is either slowly broken or quickly built on the software it posses. Are you looking for business growth strategies? Have you heard about using predictive modeling? If you are asking yourself, “what is predictive modeling,” then this article will help you learn how to boost business growth initiatives by analyzing data and making predictions.
Predictive modeling is as powerful of a technology as the internet itself and will be the next necessity for companies wanting to not only survive, but to thrive.
What is Predictive Modeling?
Predictive modeling is used to mine for data from a number of sources. The software allows companies to mine large amounts of data and analyze it to increase the probability of business operations.
Whether you have in-house servers or intend to store your data in the cloud, it is possible for all businesses to use predictive modeling and analytics to find characteristics that lead to accurate predictions.
The more you know about real-time business or consumer needs, the more likely you will be able to compete with other data mining techniques or strategies.
Predictive modeling software is the automated version of data analysts. Instead of paying 5 to 6 figure salaries for analysts to take a look at data, predictive modeling does the heavy lifting at a much faster rate.
To get the kind of information that predictive modeling offers, businesses would have previously had to hire expensive analysts to go through the data. These hires would be full time and would become their own department within companies.
Predictive Modeling Software replaces the need for such large numbers of staff and completes analyses at a much faster rate than entire human teams can.
What Is the Value of Predictive Analytic Software?
Businesses have access to lots of information that is analytical in nature, which is why companies have used predictive modeling for years to foresee business functions and save time, money and resources.
It is a valuable tool that determines future functions based on data like customer demographics, geographic locations and marketing strategies. Predictive analytics also identify product or service sales and growth.
Moving forward, predictive modeling will become as common a technology for businesses as the internet itself. In fact, for large corporations it’s one of the most powerful tools because it allows a company to save time, money and resources by predicting the success rate of certain business campaigns.
How Does Predictive Analytics Boost Growth?
Data mining changed everything, but because of the cost of data scientists and servers to store the information, it was impossible for smaller companies to compete with larger revenue earners.
Thanks to computer learning, powerful laptops and cloud server capabilities, it is now conceivable to gain significant insight within a small amount of time. When you also know how to gauge the information for accuracy, you understand the value of predictive modeling.
Another value of predictive modeling is the ability to identify market segmentation and growth patterns. It allows marketers to analyze customer behaviors, demographic subsets, prime geographic markets and psychographic segmentation.
Psychographic segmentation, in particular, will identify the most probable personalities, interests, beliefs or lifestyles that your business structure will attract. It also allows your business to implement marketing strategies, advertising ideas and new product or services that affect future growth policy and procedures.
Ways Predictive Modeling Boosts Growth
There is a lot of data available online including websites or on social media pages. You also have access to free tools like Google Trends or AdWords that allow you to predict trends or behaviors based on search inquiries.
There is also social media analytics that gives you more insight into customer needs or thoughts. You will be able to foresee and implement growth strategies in real-time. Predictive modeling will also allow you to take large amounts of data and narrow it down into likely business goals based on market and product or service trends.
Whether you choose micro or macro predictive modeling, you will reach peak performance levels by focusing your resources on the most promising campaigns. You will also reduce the amount of time and money needed to identify company infrastructure needs, product enhancement, public relations or engagement marketing that directly affect growth as well as when it is best to invest in these strategies. Predictive Modeling Software isn’t a luxury but instead a necessity for competitive businesses around the globe.
Author: Bruno Souza