How to better define your business strategy based on data integration solutions
Organizations can only plan efficiently if they base their future predictions on past results. However, in order to do that you need access to reliable and accurate sources that can be easily pulled whenever you need them.
However, most companies keep all this relevant data in silos, which can make it a bit difficult to access it in a timely manner and in a way that provides certainty. This basically leads us to predictive analytics – the best tool derived from data integration solutions that can generate tremendous benefits long-term.
By reaping the benefits of predictive analytics companies can now locate which market segments are up-and-coming and ready to be taken advantage of, identify how the customer will make future purchases and their behavior, as well as have quicker reactions to any changes that might occur. Last but not least companies will definitely be able to identify any arising trends. Let us take a closer look at what this means for you and your business:
Identifying Profitable Market Segments
The world is well-past that point in which companies can predict and suggest similar items to their existing customers. Actually predictive analytics offers a lot more than this – companies even have the power to pinpoint the market segments that are budding and hold a lot of potential for your business.
By having this competitive edge over companies similar to yours, you will be able to stay ahead of them by being properly informed regarding market segments that may not yet be suiting your needs, but will be one day. At that time in the future, you will be fully equipped to take them on.
Predicting Customer Behavior Regarding Future Purchases
Predictive analytics is a diamond-in-the-rough for all companies looking to better predict what lies ahead or to better plan their future stocks. Nonetheless, there are a lot of hidden advantages as well, that work wonders on smaller scales.
This is how companies are able today to predict what their customers might want to purchase in the future and suggest them something similar, while keeping them satisfied and surprised during their shopping experience.
Amazon is an online retailer that managed to use predictive analytics to its full potential, by simply trying to match the customer’s browser history with the profile of other buying customers that might have behaved in the same way.
Predictive analytics is a handy tool that you can use to reach directly those who are more likely to purchase anything. As we said before, this is only the granular scale at which predictive analytics shines bright. Nevertheless it can also be used for B2B clients in order to cut back on an unnecessary expenditure of time, money and effort.
Quicker reactions to changes
Nobody can predict the unpredictable. There can always be events that you have no control over and that can leave you feeling powerless, affecting your company’s well-being and disturbing the delicate balance that you worked so hard for.
Among these the most powerful can be anything from natural disasters to financial crises or shifts that change everything. More often than not it is difficult to estimate the impact these events will have on your business. This is where predictive analytics comes in.
For example, if a new tax is introduced it is hard to tell how much it will impact your business. But by having predictive analytics at your disposal you will know whether it is better to price your services or products differently or if it simply would be too damaging to continue doing business in that jurisdiction.
Identifying arising trends
The market is constantly evolving, gradually accommodating the customers’ needs and desires. Especially in today’s environment it is particularly difficult to stay ahead of the game, always keeping track of the ebbs and flows.
In this case, data is precious and can be analyzed and used to predict likely future trends. For example, if there is an indication that a great number of people are searching for a specific item (Canada goose jacket), you will know how to better stock for the upcoming cold season.
These are only a few of the ways that predictive analytics can help you be a better strategist when it comes to planning ahead for your business. The data accessible through data integration solutions is very accurate and can thus immediately be linked to analytics tools that can boost your business. To learn more about this, contact us.