Predictive Analytics for Revenue Generation
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Predictive analytics is a valuable tool for revenue generation. By analyzing past data and trends along with in-the-moment data, you can predict your customers’ behavior and use this information to target campaigns, identify high-value customers, and plan for future growth.
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While concerns about staff and budget shortages caused by the COVID-19 pandemic have held back some businesses' analytics technology expenditures, for others, analytics has become even more essential, allowing organizations to navigate fast-changing client behaviors and supply chain disruptions.
The significance of predictive analytics in business was quite apparent in a 2021 survey conducted by Hanover Research for LogiAnalytics. The survey of over 2,000 knowledge workers found that 90% of respondents considered analytics to be "very or extremely important" when making business decisions. 87% of those surveyed said their firms used analytics "often or very often" to make decisions.
According to the numbers that Markets and Markets published recently, the market for predictive analytics is anticipated to nearly triple in size to $28 billion by 2026. Fast-growing enterprises are leveraging predictive analytics in today's hyper-competitive market to understand their customers better and optimize income, the effectiveness of their marketing spend, and, ultimately, improve their bottom line.
Predictive analytics is an interdisciplinary field of science and business that uses data and statistics to predict future events. We can define it as the process of using new and historical data to foresee the result, activity, behavior, and trends of your consumer base.
Predictive analytic models use historical data (i.e., how well certain products sell together; what percentage of people who visit your website end up buying something) and predictive models (factors such as location; season; time of day; type of device used; etc.) to create statistically-supported projections about future behavior patterns or outcomes. But how can predictive analytics be used in business? There are several reasons why you might want to employ predictive sales analytics in your revenue generation strategies. These include:
Predictive analytics and BI (business intelligence) are two different technologies used to generate more revenue. While both technologies can analyze past data and trends, BI is for diagnosis, while predictive analytics is for probabilistic outcomes. BI will help you understand what is happening in your business, while predictive analytics will help you know what is likely to happen.
The following are some of the pitfalls which to be aware of when using predictive analytics:
Here are some fascinating examples of predictive analytics in action:
Predictive analytics allows companies to forecast the consequences of present market conditions and operations, allowing owners to make well-informed decisions. It aids organizations in optimizing their internal processes, improving client satisfaction, managing budgets, identifying new market opportunities, and anticipating the impact of external events.
Some of the benefits of predictive analytics for revenue generation are:
There are various tools that you can use to implement revenue-generating ideas for business. Some popular options include:
Predictive analytics helps businesses understand and transform data into insights. A growing number of companies are using predictive analytics to gain a competitive advantage, make data-driven decisions, and improve customer satisfaction.
Predictive analytics brings into business data-driven forecasting, allowing them to:
Predictive analytics is not a one-time event. It is an ongoing process that needs to be refreshed regularly. The results of your analysis can help you determine which data needs to be collected and how you can improve the model over time, making predictive analytics a valuable tool for your revenue generation plan.
For revenue growth management, your company must use its data to mitigate challenges and risks as well as identify strong opportunities. Few technologies are as effective in doing this as predictive analytics. The future is now for businesses that adopt predictive analytics.
Put It Forward uses machine learning and data analytics to power its predictive analytics solutions. The company has harnessed state-of-the-art technology with human connection for unique experiences at scale. It is revolutionizing how businesses run on this new paradigm creating an agile environment where transformation can take place over time.
With Put It Forward's no-code solutions, you don't have to worry about coding. The AI and predictive analytics solution handle it all for you with propensity and internet-based marketing solutions built in! You can use our models as a testing ground before implementing them on your site—saving time while adapting quickly enough whenever needed. Our predictive analytics tools benefit every level of your daily revenue-generating activities, taking into account fast-changing customer data and the level of sway that change has on your revenue growth formula.
Contact us today and get a free consultation of this simple yet very powerful data analytics solution.
About Author
Elsa Petterson
Partner success manager that specializes in connecting her work with finding new ways on how to effectively engage customers, understand their preferences, communicate faster, and close new deals. She has been expanding her expertise at Put It Forward since 2016. Passionate about data automation, integration, and predictive analytics for revenue generation, Elsa is an expert in finding solutions that help organizations operate effectively in marketing, finance, sales, and other departments.