‘House of Cards’ on Netflix is a product of predictive analytics!
However, before we really touch upon more analytical details let us look at what has really enabled this. A common knowledge is that 90% of world’s data has been generated in last 2 years, converting data into big data. We all know that Digitisation propelled this sudden out break of data. Both in B2B and B2C majority of the research happens online, making presence of a strong digital eco-system essential.
This has been deemed necessary for improved customer experiences and to build stronger customer relationship. In the era of big data fuelled by digitisation personalised customer and consumer experience is a necessity not merely good to have; both for B2B and B2C. Hence, no longer it is about B2B or B2C marketing/ communication but rather about Heart to Heart communication. Few organisations like Amazon, Facebook , Google and Apple are a great example of this. Apple infact has built a business model where it gets information from different sources and combines them to come up with a well weaved solution to win customer’s acceptance.
The advancements in big data technologies have made possible for companies to now have access to individual user data in multiple formats and through different sources. Organisations are re-prioritising to improve customer experience and engagement through predictive analytics.
What is predictive analytics?
Predictive analytics is about making predictions for the future. It is an advanced analytics branch used for making predictions for unknown future events. It uses many techniques like data mining, statistics, modeling, machine learning, and artificial intelligence to analyze the historical data. With its power of segmentation and customer targeting, predictive analytics gives valuable insights into a customer’s journey, allowing delivery of personalised content to customers across channels.
Why is predictive analytics important?
Advantages of predictive analytics are very obvious with the most important one being how they can transform organisations. Using data for business advantage is a common place with predictive analytics. It can determine what the next business decision needs to be and uses proven mathematics and modelling methods which helps attain key strategic objectives. Through building a competitive edge predictive analytics leads to top line growth and customer retention. Financial sector find most value in risk management aspect of predictive analytics by protecting and preventing fraud. In short predictive analytics is all about truly actionable insights.
Using predictive analytics: Customer centric approach
Customer has always been the key for any business. If there are no takers for a product or service then there is no business. Hence, each business action is centered around its customer and predictive analytics has empowered businesses to service their customers better and faster. In real-time customer or user data is available which besides demographics also has transactional as well as web and social behaviour data making the information richer about each user. Through use of this data, Predictive analytics has transformed business to human organisations.
An effective Predictive analytics solution is like a crystal ball which answers a customer’s intention even before it has occurred. From predicting a customer’s purchase to knowing how to increase share of wallet to knowing the best time to email customers, is all a reality now. Customer centered approach is the key for organisations to achieve top-line growth and market share. Organisations continue to seize competitive advantage through providing great customer experiences with the use of machine learning, visual data and predictive analysis.
Understanding consumer choices at the right time, place and through the right media is very critical. Customer Segmentation based on their demographics, purchased products and social connections is insightful but predictive analytics gives a detailed understanding of customer’s network. Organisations by leveraging relationship graphs gain deep understanding of customer’s influence on their network and hence, knowledge on the customer propensity to adapt a new product .
Hence, next time if Netflix suggests you watch ‘House of cards’, then you will know that Netflix knows you love watching David Fincher’s movies, films starring Kevin Spacey and you maybe fond of British version of ‘House of Cards’ or a similar series or a film. While the list of such wonders of predictive analysis maybe endless there in short with its optimised and value of customer centric approach, the magic of predictive analytics is becoming irreplaceable within the organisations.
So what is next? : Speed of Response
In the world of digitisation data is being generated at an unstoppable speed limit propelling organisations to respond at a lightening speed. You may be brilliant at what you do, but, key is to be there or respond where your customers are. With quicker response the power of real-time predictive analytics is unfathomable. Those organisations and professionals who are able to or are endeavouring to achieve real-time response to their customer, are there to stay in the business for long.
At AnalytixLabs we reckoned this phenomena since our founding days. Keeping pace with the current times we continue evolving our pedagogy with current industry relevant courses as well as industry projects. If you are a professional or a student who wants to join this promising future world of analytics or an organisation transforming with the current times then do call us or visit our course page ( analytixlabs.co.in) to know more. Who knows your next project maybe on predictive analytics with Netfflix!