What is predictive analytics?
Predictive analytics informs and directs decision making by applying a combination of advanced analytics and decision optimisation to an organisation’s data, with the objective of improving business processes to meet specific organisation goals. It is through the analysis of past, actual data, that organisations are better equipped to predict future outcomes and make decisions appropriately.
How can predictive analytics help me?
Achieve Customer Intimacy
Attract new customers. Reduce costs of acquisition marketing and increase conversion rates by better targeting of prospects with the potential to be most profitable.
Grow your business. Increase returns from cross and up sell campaigns by basing offers on purchase history of similar customers and propensity to respond.
Retain your customers. Identify customers at risk of leaving and target retention efforts at customers with high predicted value. Select offers and incentives most likely to persuade each customer to stay loyal.
Achieve Operational Excellence
Manage and maintain assets. Identify the right physical inventory to stock in your multi-tier supply chain and assess how many components to purchase to support your production facilities. Maintain your physical infrastructure and capital equipment.
Maximise your capital. Ensure you are allocating your people and cash in the most efficient manner, in the context of your business processes.
Protect your Organisation from Threats and Fraud
Reduce risk. Accept or reject customers or transactions on the basis of accurate risk estimates. Minimise bad debt by optimising collections. Ensure compliance and gain competitive edge by estimating risk exposure accurately.
Prevent Fraud. Identify patterns and anomalies that represent cases of fraud. Intercept transactions that are potentially fraudulent in real time. Make more effective and efficient use of investigative resources by targeting high-risk cases accurately, and highlighting reasons for suspicion.
Proof it works
Nucleus Research reported that 94% of SPSS customers achieved a positive ROI and average payback in 10.7 months. This is one of the highest ROI scores Nucleus has ever seen in its Real ROI series of research reports.
First Tennessee Bank created a 600% increase in uptake of cross-sell campaigns, increased response rates by 3% and reduced mailing costs by 20%.
Memphis Police Department are keeping ahead of criminals by finding the “hot spots” using predictive analytics which has resulted in a 30% reduction in serious crime and a 4x increase in cases solved from 16% to 70%.
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