Predictive analytics is the use of data, statistical algorithms and machine-learning techniques to provide the best assessment of what the future holds.
A recent study conducted by Forrester Consulting, and commissioned by Radius, finds the implementation of predictive analytics demonstrates greater marketing maturity, and of the B2B marketers surveyed, a vast majority indicated they would be implementing or expanding their predictive marketing analytics systems. Only 2 per cent displayed no interest or involvement at all.
An enabler of big data, predictive analytics assists organisations to implement a forward-looking perspective and increase their bottom line. Thanks to the increasing quantities and types of data being collected at steadily reducing costs, it also provides a competitive edge in today’s challenging economic landscape.
83 per cent of B2B users of predictive analytics perceived a significant business impact and compared to non-users show 2.2 times the annual revenue growth of greater than or equal to 10 per cent; 2 times higher market share than competitors; and 2 times the likelihood of exceeding marketing value contribution goals.
Furthermore, users of predictive analytics are tapping into cutting-edge and advanced B2B marketing. The majority of users have a standardised marketing platform as opposed to only a third of non-users, and the fast implementation of analytics solutions as well as tracking of conversion rates is happening considerably more in B2B organisations that have implemented predictive analytics solutions.
A TDWI report found the five top applications of predictive analytics to be the identification of trends, better understanding customers, improving business performance, driving strategic decision-making, and predicting behaviour. The vast majority of users of predictive analytics believe it enables them to understand, identify, and engage with their customers.
And any industry can use it to optimise their operations and increase revenue, from banking and financial institutions to health care providers, retailers to manufacturers.
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