Everything! Let me explain.
Wouldn't it be great if you could know NOW with almost complete certainty the events that were going to happen next week or next month or next year that would impact your customers or your business?
If you did, you could take action to benefit from the opportunity, or prevent the potential loss of a customer, for instance.
Well that's exactly what companies are now doing using a tool called Predictive Analytics. They analyze data about their business, combined with information about their customers and prospects in a way that allows them to predict what is going to happen, and take advantage of a competitive edge other companies don't have.
This is where Beer and Pop-Tarts come in. Wal-Mart put Predictive Analytics on the map in 2004 when dealt the double-whammy in Florida of Hurricanes Charlie and Frances.
When the hurricane warnings for Charlie were issued, Wal-Mart tracked everything - the weather service hurricane data, customer information and spending patterns. Three weeks later when the warnings for Frances were issued, Wal-Mart used the information it had gathered when Charlie hit to predict the likely sales of ALL of their items. (It turns out, Floridians really go for beer and Pop-Tarts when a hurricane is coming - go figure!)
Wal-Mart used the information they gathered to ensure that their Florida stores were adequately stocked with the merchandise their customers would want, turning a potential business disruption into an opportunity.
And it's not only Wal-Mart. Wireless phone companies know that if a customer calls their Customer Care Department with the same complaint 3 times within a short period of time, that customer is likely to switch to another carrier (or "churn" to use wireless jargon). There is a predictable correlation between the event and its outcome that allows a company using Predictive Analytics to turn a potential negative into a positive.
Another way companies are using Predictive Analytics is in deciding where to expand retail operations and locate new stores. When presented with multiple choices of available lease space, how to choose the best option is often a challenge.
Using Predictive Analytics, companies evaluate their existing customer base and store data, then combine that with information about household income, age and other lifestyle and demographic data to select the right location for their business.
As you can see, Predictive Analytics can help ANY type of company or organization gain a strong competitive advantage. And while it sounds like it takes an immense IT department and a big budget to utilize this technology, that's not the case.
The best way to launch a Predictive Solution is to partner with a company that can help you get your feet wet, by doing a test with one area of your business. A successful Predictive Analytical Solution starts with a customer focus, so keeping that in mind - work with your partner company to find ways that you can keep existing customers, attract new members or customers to your business or capitalize on a business opportunity your competitors aren't aware of.
Once you experience success in one area of your business with Predictive Analytics, you'll be amazed at how quickly you start to see other uses for this valuable tool throughout other areas of your organization.
If you'd like to know how Predictive Analytics could help you take advantage of unforeseen opportunities, gain new customers and get a competitive edge, give me a call!
Got a Question? Ask.
Ask the community a question about this article:
Q&A Powered by:
Latest Marketing Articles
Some Techniques for Good Copywriting
By: Robert Starr | 07/09/2008
Copywriting may appear easy, but it's the professional writer that makes it look that way.
Joint Venture Marketing: Running Ads for Little to No Cost!
By: Christian Fea | 07/09/2008
In the business world, or the world in general for that matter, getting something for nothing is a universally suspicious concept. "There's no such thing as a free lunch," "You always have to pay the piper," and such slogans are so commonplace they are cliche - and beliefs on which most people were raised.
Using Topic Based Articles To Build Incoming Links
By: Anil Vij | 07/09/2008
Content is king in the world of SERPs, and while more and more website owner are turning to publishing blog articles to help build Google PR, there is an easier way to maximize the impact and effect that your articles can get in terms of one way links by simply publishing articles to article directories.
The Power of a Strong, Well-Written Headline
By: Ramon Vela | 06/09/2008
When free to use our own creative marketing, as a VAR (Value-added Reseller) we achieve far better results than when we must use our vendor's marketing mandates.
Direct Marketing Tips And Solutions To Systematically Boost Your Profits
By: Paul Rowe | 05/09/2008
Direct marketing has two aspects, first to send messages or news directly to the customers without media interference, which includes email or telemarketing with consumers or business houses. Secondly, direct marketing focuses on driving purchases attributed to a specific "call to action".
Top 10 Ways To Get More Prospects Excited About What You Sell
By: Kathleen Ann | 05/09/2008
Your advertising copywriting needs to work hard to build up excitement and enthusiasm for your products or services. So much excitement that your prospects can hardly wait to whip out their credit card and buy what you sell. Try these top 10 ways to get more prospects excited about what you sell.
Finding The Clients When You Need Them
By: Chris Simpson | 05/09/2008
If you are in a situation where you need to get new clients, you may find that you are feeling stressed out about how your business is going. Whether you are new to the business or you have been working for a while, you should relax!
How To Market In A Bad Economy
By: Karen Scharf | 05/09/2008
Does this sound like you...the economy is going south, and you're starting to panic. You're worried about the financial health of your small business. You think about slashing your prices to stimulate your sales. You assume you need to cut back on your...
Marketing 
