Customers are a precious commodity and the business climate is rough. Just the time for some of those specialized tools from the biz toolbox. Not to get too buzz-wordy, but predictive analytics gets very granular when parsing incoming data about your business. Of course you need to have a business that takes in a fair amount of information about customers, markets, competitors, etc. to even begin to apply predictive analytics.
From the link:
Traditional business intelligence (BI) might point you in a direction, but predictive analytics aims to uncover a treasure map, says David White, a senior research analyst at Aberdeen Group. That’s because BI identifies relationships between a few data points, while predictive analytics evaluates how many factors work together. BI vendors are now offering predictive analytics tools that used to be available only from niche vendors such as SAS and SPSS.
White knows of a department store chain using predictive analytics to formulate more profitable coupon campaigns by targeting the right customers. If a store sends a coupon to a customer who was going to make a purchase anyway, the store is no further ahead. But send the same coupon to a shopper who wouldn’t have otherwise come in, and you’ve made money, White says.