Predictive analytics has been used to foretell the future of a business. Companies have been using it to foresee their sales and revenue, or the problems that they might encounter. According to “The Big Data Market: 2017 – 2030 – Opportunities, Challenges, Strategies, and Industry Verticals & Forecasts”, by 2020, more than $36 billion will be spent by companies and firms just to maintain their analytics.
Businesses are spending their resources on storage and infrastructure. They are needed when companies use predictive analytics. Predictive analytics is the usual prediction using present and historical facts gathered by the company. The data from the past and present will be combined and the result will be used to analyze and prevent risks. By doing that, companies can also increase their sales and revenue in the process.
However, those things are not the only use of predictive analytics. It can also be used to find new business ventures and opportunities. It has been proven by EverString’s research titled “How Predictive Marketing Analytics Boosts B2B Business Performance”. In the research, they found out, with the help of Forrester Consulting, that the marketing’s role in a business to business set up is not just getting leads; they have to close the deal now.
Statistics about predictive analytics in marketing
Marketers that use predictive analytics are 1.8 times more likely to achieve their organization’s goals. They are also 2.9 times more likely to attain higher revenues than those who do not use predictive analytics. Also, these marketers are 2.1 times more likely to succeed in their chosen field in the business than their competitors.
Moreover, Forrester Consulting, after interviewing 150 marketing leaders, found out that predictive analytics has a great influence when it comes to the company’s performance, more specifically, on the connection between predictive marketing and business results with its metrics.
In addition, the researchers stated in the study that during 2016, 89 percent of marketers have incorporated predictive analytics to their process. Moreover, those who were interviewed that do not have predictive analytics said they are planning to execute it in the coming future.
Since companies really value a precise prediction, it was unsurprising that they do use predictive analytics to also know which company or other businesses they can trust their firm to. “The Big Data Market: 2017” also reported that companies believe in predictive analytics that is why they are investing so much money in it. They believe that it will have a great return of investment in the future.
Predictive analytics helping marketers with decision making
Pattern and statistics are gathered when predicting analytics. The marketers base their decision through them. If they see a positive outcome after trying a method, they will most likely invest on that. If they see a loss, they will, more or less, take another route to achieve a goal.
Assumptions do not have a room when it comes to businesses. If you want an accurate prediction and facts from past and present data, you should consider using predictive analytics.