What is predictive analytics? and How it is working?
Welcome to Fios Marketing Video Tips Series. How Predictive analytics will inform the future of customer experience. Think about the last time you use your phone or your tablet and the system will auto suggest the next word for you. Well, the system is using your language, use and millions of others to predict the next word you're going to use. Well, predictive analytics is a category of analytics and a set of mathematics that tries to predict your outcome or an event that will occur.
Now, the predictions usually use various elements of data and observations, historical data, excetera. In order to make the prediction. It's a combination of statistical methods, artificial intelligence, and machine learning. So let's take two use cases about how you would leverage predictive analytics. Forecasting a need Forecasting A need is about getting a customer or a group of customers to understand what they are going to either buy as a product and or a service.
How do you do that? Use predictive analytics with all the algorithms we spoke about. But what is important is that you curate your marketing materials for that group. So it's one thing to know that they're going to buy something. It's another thing to figure out how you're going to position it.
So you have to position it and get the cause effect of that purchase, to incent them to purchase, to motivate them to purchase. So it's that factor that you're going after. So you have to go beyond just the basics of prediction. So try to think about that and practice that and the set of data you need to manage that kind of process. Example, two is reducing churn.
Now churn is when a customer stops shopping with you. Now there are characteristics of when customers stop shopping with you. And that would be a combination of segment codes a time when they hit the CLV, you got a bad review. You happen to get them the wrong product, excetera. Now, you can predict when customers churn and segments of customers churn.
And when you notice that that pattern is about to happen to an individual customer or a smaller group of customers, you modify the behavior that is sent to them so you can't use the same practice and expect a different result. So you need to modify either a message or a method of communication or the type of information you seek all the way to see you as a brand. So try to change some of those variables, manage the observation, and see if that Churn rate changes. For more information, please go to our website groupfio.com