Using Predictive Analytics to Assess the ROI of a Startup

| February 14, 2019

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Countless entrepreneurs aspire to start successful online retail businesses. They are enamored with the dream of working from home and having the opportunity to make virtually unlimited wealth. Unfortunately, the probability of success in this field is often considerably lower than they would like to believe. Nevertheless, some e-commerce entrepreneurs can thrive by taking advantage of big data technology. Predictive analytics helps savvy entrepreneurs make realistic projections and develop sound strategies to meet them. They should understand the benefits of big data analytics and use it to their fullest potential. The dismal state of the e-commerce industry indicates that predictive analytics is more important than ever. Online entrepreneurs often get overly optimistic when they hear data about the growing e-commerce industry. They have read statistics showing that the industry is expected to grow to $1, trillion by 2024. At first glance, this figure suggests that there is a tremendous opportunity for them to enrich themselves by capturing a small share of the market.

Spotlight

Xactly Corp

Xactly delivers a scalable, enterprise platform for planning and incenting sales organizations, including sales quota and territory planning, incentive compensation management, and predictive analytics. Using this powerful sales performance management (SPM) portfolio, customers mitigate risk, accelerate sales performance, and increase business agility. Combined with Xactly Insights™-- the industry’s only empirical big data platform, Xactly empowers companies with real-time compensation insights and benchmarking data that maximize the bottom line. With an open, standards-based architecture, Xactly seamlessly integrates within an enterprise’s existing infrastructure, with the ability to work with any ERP, CRM, or HCM application, while meeting the highest enterprise standards in security, reliability, and privacy.

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5 Predictive Data Analytics Applications

Article | May 31, 2021

According to Google trends, predictive data analytics has gained a significant amount of popularity over the last few years. Many businesses have implemented predictive analytics applications to increase their business reach, gain new customers, forecast sales, and more. Predictive Analytics is a type of data analytics technology that makes predictions with the help of data sets, statistical modeling, and machine learning. Predictive analytics uses historical data. This historical data is fed into a mathematical model that recognizes patterns and trends that are then applied to current data to forecast trends, practices, and behaviors from milliseconds to days and even years. Based on the parameters supplied to them, organizations find patterns within that data to detect risks, opportunities, forecast conditions, and events that would occur at a particular time. At its heart, the use of predictive analytics answers a simple question, “What would happen based on my current data and what can be done to change the outcome.” In the current times, businesses have multiple products offerings at their disposal to choose from vendors of big data predictive analytics in different industries. They can help these businesses leverage historical data discovering complex data correlation, recognizing patterns, and forecasting. Organizations are turning to predictive analytics to increase their bottom line and gain advantages against their competition. Some of those reasons are listed below: • With the growing amount and types of data, there is more interest in utilizing it to produce valuable insights • Better computers • An abundance of easy to use software • Need of competitive differentiation due to tougher economic conditions As more and more easy-to-use software have been introduced, businesses no longer need statisticians and mathematicians for predictive analytics and forecasting. Benefits of Predictive Analytics Competitive edge over other businesses The most common reason why multiple companies picked up predictive analytics was to gain an advantage over their competitors. Customer trends and buying patterns keep changing from time to time. The ones who can identify it first will go ahead in the game. Embracing predictive analytics is how you will stay ahead of your competition. Predictive analytics will aid in qualified lead generation and give you an insight into the present and potential customers. Business growth Businesses opt for predictive analytics to predict customer behavior, preferences, and responses. Using this information, they attract their target audience and entice them into becoming loyal customers. Predictive analytics gives valuable information about your customers such as which of them are likely to lapse, how to retain them, whether you should market directly at them, etc. The more you know about them, the stronger your marketing will become. Your business will become the leader in predicting your customer’s exact needs. Customer satisfaction Retaining existing customers is almost five times more difficult than acquiring new ones. The most successful company is the one that invests money in retaining those customers as much as acquiring new ones. Predictive analytics helps in directing marketing strategies towards your existing customers and get them to return frequently. The analytics tool will make sure your marketing strategy caters to the diverse requirements of your customers. Personalized services Earlier marketing strategies revolved around the ‘one size fits all’ approach, but gone are those days. If you want to retain and acquire new customers, you have to create personalized marketing campaigns to attract customers. Predictive analytics and data management help you to get new information about customer expectations, previous purchases, buying behaviors, and patterns. Using this data, you can create these personalized marketing strategies that will help keep up the engagement and acquire new customers.   Application of Predictive Analytics Customer targeting Customer targeting divides the customer base into different demographic groups according to age, gender, interests, buying, and spending habits. It helps companies to create tailored marketing communications specifically to the customers who are likely to buy their products. Traditional techniques do not even come close to identifying potential customers as well as predictive analytics does. The major constituents that create these customer groups are: • Socio-demographic factors: age, gender, education, and marital status • Engagement factors: recent interaction, frequency, spending habits, etc. • Past campaign response: contact response, type, day, month, etc. The customer-specific targeting for the company is highly advantageous. They can: • Better communicate with the customers • Save money on marketing • Increase profits Customer churn prevention Customer churn prevention creates major hurdles in a company’s growth. Although it has been proven that retaining customers is cheaper than gaining new ones, it can become a problem. Detecting a client’s dissatisfaction is not an easy task as they can abruptly stop using your services without any warning. Here, churn prevention comes into the picture. Churn prevention aims to predict who will end their relationship with the company, when, and why. The existing data sets can help develop predictive models so companies can be proactive to prevent the fallout. Factors that can influence the churn are as follows: • Customer variables • Service use • Engagement • Technicalities • Competitor variables Using these variables, companies can then take necessary steps to avoid the churn by offering customers personalized services or products. Risk management Risk assessment and management processes in many companies are antiquated. Even though customer information is abundantly available for evaluation, it is still antiquated. With advanced analytics, this data can be quickly and accurately analyzed while maintaining customer privacy and boundaries. Risk assessment thus allows companies to analyze problems with any business. Predictive analytics can approximate with certainty which operations are profitable and which are not. Risk assessment analyzes the following data types: • Socio-demographic factors • Product details • Customer behavior • Risk metrics Forecast sales Evaluating the previous history, seasonality, and market-affecting events make revenue predicting vital for a company’s planning and result in a company’s demand for a product or a service. This can be applied to short-term, medium-term, and long-term forecasting. Predictive models help in anticipating a customer’s reaction to the factors that affect sales. Following factors can be used in sales forecasting: • Calendar data • Weather data • Company data • Social data • Demand data Sales forecasting allows revenue prediction and optimal resource allocation. Healthcare Healthcare organizations have begun to use predictive analytics as this technology is helping them save money. They are using predictive analytics in several different ways. With the help of this technology, based on past trends they can now allocate facility resources, optimize staff schedules, identify patients at risk, adding intelligence to pharmaceutical and supply acquisition management. Using predictive analytics in the health domain has also helped in preventing cases and risks of developing health complications like diabetes, asthma, and other life-threatening problems. The application of predictive analytics in health care can lead to making better clinical decisions for patients. Predictive analytics is being used across different industries and is good way to advance your company’s growth and forecast future events to act accordingly. It has gained support from many different organizations at a global scale and will continue to grow rapidly. Frequently Asked Questions What is predictive analytics? Predictive analytics uses historical data to predict future events. The historical data is used to build mathematical model that captures essential trends. That predictive model is based on current data that predicts what will happen next or suggest steps to take for optimal outcomes. How to do predictive analytics? • Define business objectives • Collect relevant data available from resources • Improve on collected data by data cleaning methods • Choose a model or build your own to test data • Evaluate and validate the predictive model to ensure How does predictive analytics work for business? Predictive analytics helps businesses attract, retain, and grow their profitable customers. It also helps them in improving their operations. What tools are used for predictive analytics? Some tools used for predictive analytics are: • SAS Advanced Analytics • Oracle DataScience • IBM SPSS Statistics • SAP Predictive Analytics • Q Research { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What is predictive analytics?", "acceptedAnswer": { "@type": "Answer", "text": "Predictive analytics uses historical data to predict future events. The historical data is used to build a mathematical model that captures essential trends. That predictive model is based on current data that predicts what will happen next or suggest steps to take for optimal outcomes." } },{ "@type": "Question", "name": "How to do predictive analytics?", "acceptedAnswer": { "@type": "Answer", "text": "Define business objectives Collect relevant data available from resources Improve on collected data by data cleaning methods Choose a model or build your own to test data Evaluate and validate the predictive model to ensure " } },{ "@type": "Question", "name": "How does predictive analytics work for business?", "acceptedAnswer": { "@type": "Answer", "text": "Predictive analytics helps businesses attract, retain, and grow their profitable customers. It also helps them in improving their operations." } },{ "@type": "Question", "name": "What tools are used for predictive analytics?", "acceptedAnswer": { "@type": "Answer", "text": "Some tools used for predictive analytics are: SAS Advanced Analytics Oracle DataScience IBM SPSS Statistics SAP Predictive Analytics Q Research" } }] }

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CYBERSECURITY STRATEGIES TO MAKE IT NETWORKS MORE RESILIENT TO CYBERATTACKS

Article | February 28, 2020

The increasing use of advanced technologies and the internet have created an attack surface for malicious attackers. With these progressions, businesses’ IT systems are now more vulnerable which has led them to leverage innovative cybersecurity strategies that can thwart and make their networks more resilient to cyberattacks. Cybercriminals can use a variety of attacks against individuals or businesses like accessing, changing or deleting sensitive data; extracting payment; interfering with business processes and more.These kinds of attacks present an evolving danger to organizations, employees and consumers, and can cost them reputation, finances and personal lives to some extent. So, in order to protect IT networks from cyberattacks, it is significant to be aware of the various aspects of cybersecurity.

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DEEP THOMAS EMBEDDING DATA-DRIVEN CULTURE ACROSS BUSINESS WITH CUTTING EDGE INNOVATION

Article | February 24, 2020

A US$ 48.3 billion-corporation, the Aditya Birla Group is in the league of Fortune 500. Anchored by an extraordinary force of over 120,000 employees belonging to 42 nationalities, the Group is built on a strong foundation of stakeholder value creation. With over 7 decades of responsible business practices, Aditya Birla Group’s businesses have grown into global powerhouses in a wide range of sectors metals, chemicals, pulp & fibre, textiles, carbon black, cement and telecom. Today, over 50% of its revenues flow from overseas operations that span 36 countries in North and South America, Africa and Asia.The Group Data ‘n’ Analytics Cell (GDNA) is the Big Data and Analytics arm of the Aditya Birla Group created at its centre to strategize and partner with 18+ Group businesses across B2B and B2C domains to deliver on its strategic priorities through the power of AI. The company represents strong analytics and domain expertise drawn from the best-in-class talent from leading global and Indian businesses that leverage cutting edge tools and advanced AI algorithms built on a highly scalable and robust big data infrastructure to mine and act upon petabytes of structured and unstructured data.

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How Incorta Customers are Leveraging Real-Time Operational Intelligence to Quickly & Effectively Respond to 3 Likely Scenarios Caused by COVID-19

Article | March 30, 2020

Most businesses do not have contingency or business continuity plans that correlate to the world we see unfold before us—one in which we seem to wake up to an entirely new reality each day. Broad mandates to work at home are now a given. But how do we move beyond this and strategically prepare for—and respond to—business implications resulting from the coronavirus pandemic? Some of our customers are showing us how. These organizations have developed comprehensive, real-time operational intelligence views of their global teams—some in only 24-48 hours—that help them better protect their remote workforces, customers, and business at hand.

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Spotlight

Xactly Corp

Xactly delivers a scalable, enterprise platform for planning and incenting sales organizations, including sales quota and territory planning, incentive compensation management, and predictive analytics. Using this powerful sales performance management (SPM) portfolio, customers mitigate risk, accelerate sales performance, and increase business agility. Combined with Xactly Insights™-- the industry’s only empirical big data platform, Xactly empowers companies with real-time compensation insights and benchmarking data that maximize the bottom line. With an open, standards-based architecture, Xactly seamlessly integrates within an enterprise’s existing infrastructure, with the ability to work with any ERP, CRM, or HCM application, while meeting the highest enterprise standards in security, reliability, and privacy.

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