Predictive Analytics

Author: Seetarama Hegde

Author: Seetarama Hegde

How can analytical insights from the sales data help maximize my revenue? How can I maximize the value of my offerings to my loyal customers? Which product sells more and what is the inventory? These are some of the questions that are typically faced by retailers. Retailers also face problems like expensive store locations, slim margins and tenuous customer loyalty. A retailer even needs to consider every category while making smarter decisions and manage their businesses more effectively. Reporting without analysis simply provides answers to yesterdays questions. Analytical reporting application merges the benefits of static business reporting with the interactive nature of analysis into one application to get insightful analysis reported throughout the business. Analytical reporting delivers a complete reporting solution surrounded by a very powerful analytic tool coupled with an easy to use environment for todays business user. Analytical tools and statistical methods help retailers understand the pattern of the data and make business solutions. Let us discuss about analytical services starting with predictive analytics. Predictive analytics provides the marketer with something beyond standard business reports and sales forecasts i.e., actionable predictions for each unique scenario. These predictions could encompass all channels, both online and off, foreseeing which customers will buy, click, respond, and convert. Predictive analytical models exploit patterns found in historical transactional data to identify risks and opportunities. Models capture relationships among many factors to allow assessment of risk or potential associated with a particular set of decisions. Predictive analytics is a data mining technology that uses customer data to build a predictive model specialized for business operations. This analysis requires collective information on customers purchase, behaviour and demographics. Predictive models analyze past performance of a customer to improve market effectiveness to assess how likely customer behaves. This process learns from your organizations collective experiences by leveraging your existing logs of customer purchases, behaviour and demographics. Retailers can incorporate predictive analytics into their daily operations to improve their business processes. This would enhance a retailers decision making and they would gain the ability to direct, optimize, and automate decisions, to meet defined business goals. By using predictive analytics, they can increase their probability and decision making processes. Predictive analytics provides a quantitative foundation for rapidly identifying, objectively evaluating and confidently pursuing new market opportunities. It helps retail organizations not only to grow and generate revenue quickly and predictably but also improve the operating performance and enable retailers to make more accurate forecasts, manage resources and improve sales productivity. Seetarama Hegde

Retail Consultant CustoLogix Solutions URL | www.custologix.com">www.custologix.com

CustoLogix with its wide experience in statistical analysis helps retailer to improve retail profitability through Analytics. To know more about predictive analytics please visit CustoLogix at www.custologix.com/serviceAbout the Author:

Sr. Business Analyst,

Retail Consultant

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