In this article we will learn:
It is very common to find businessmen who make predictions about the future using very subjective things as a basis, limiting themselves to a couple of factors, it is almost an art. As nice as it sounds to be a business genius, we should not challenge luck.
Making accurate predictions or predictions with a minimum margin of error is entirely possible thanks to predictive analytics.
The sooner you stop using the weekly horoscope to make business decisions, the better. What do you think if I tell you that it is possible to know your customers’ needs in advance and prepare yourself ahead of time? Or that you can detect gaps in the market waiting to be exploited without having to light candles to a saint?
To put it simple, when we talk about predictive analytics sales, it is a method where we use data to find consumption patterns or consumer behaviors in order to make predictions about the future and it is 10000% more reliable than the horoscope because we do not rely on magic, chance or luck. We use specialized tools to process the data.
Who can do predictive analytics sales?
Easy, let’s make a checklist of what you want for your company:
- Make sound decisions based on data.
- Sustainable growth.
- Predictability.
- Improve your finances.
- Fine-tune your sales cycles.
- Know more about the industry.
- Explore opportunities before competitors.
- Improve customer service.
If you want everything on the list, you’re the one. Processing data for your own benefit should not be exclusive to any industry. Anyone who wants to grow, big or small, should think about doing it. This will ensure you stay in the race and your competitors won’t leave you behind.
Always keep in mind that getting good sales is the result of knowing how to monetize data and not the other way around. Companies are not just a money-making machine, during the whole process they are generating data that we can take advantage of and that are very valuable.
Here is a list of some important metrics when doing data analysis:
- Sales.
- Sales to date.
- Sales growth.
- Product performance.
- Product cannibalization.
An example that helps us demonstrate what predictive analytics can do for you. We have the case of the U.S. retail chain Macy’s, which managed to increase its sales by 4% in a short three months. This is a significant increase if we are talking about very large chains.
How did they achieve this?
- Studying individuals and groups achieving customer segmentation.
- Sending personalized emails using the database of your users.
- Interacting only with interested customers.
Predictive analytics in e-commerce
It is important to highlight the wonders that can be achieved in E-commerce with predictive analytics. The COVID-19 phenomenon caused E-commerce revenues in Colombia to increase by 35% compared to 2019. An estimated 135 million new internet users in LATAM were estimated. Predictions for 2024 is 351 million users in the region, which would be a 31% increase. Online retail is growing like yeast in water and going into the market without a tool to help you process the data is like entering a Formula 1 motorcycle race with a tricycle with wheels.
Surely it has happened to you that you give a like to a pizza post or chat with your best friend about eating pizza on WhatsApp, then you log into Facebook to find a bombardment of food advertising. They take all the data they can to upsell you. They have data on the food you like, the shirts in the stores you spent the most time looking at, the shoes you left in storage, etc.
You probably already feel like you’re being watched, but that’s the power of data today. Predictive analytics is not just for E-commerce and retail. The health sector, tourism and banks benefit a lot from this method. In short, anyone who offers products or services can take advantage of it. Nor is it something exclusive to giant companies. There are affordable solutions on the market that will help you grow, because to play like the big leagues you have to think like them and use their tactics.
Improve your marketing strategy
By this I mean that you will not only get information on the customers with the best chance of buying or those who are on the verge of leaving you, you will also have information on the characteristics they have in common. This way all your teams and the decisions they make will be more accurate and aligned. By refining your marketing strategy you will achieve great things.
You can also improve your products and services or add new ones. Discovering an opportunity that you can use to your advantage is wonderful. As a very simple example: Imagine that because you have started working with us you discover that in summer your sales drop because customers prefer to go to the ice cream shop because it is too hot. What can you do in that case? Add ice cream to your menu. It’s a very simple example, but it helps illustrate the kind of insights you receive and how you can respond to that information, not just leave your decisions to chance.
Predictions, as you may have noticed, are used everywhere. It is technology that is applied both to predict the weather but also for sales, because you and me, nobody likes uncertainty and we sleep easier at night knowing that it is not going to rain on Saturday at your picnic or if your sales are really going to increase this year. That’s why there are specialized tools and equipment to help you with this job. Knowing your customers’ next move and improving your sales performance is never a bad idea.
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