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What To Expect From The Best Predictive Modeling

predictive modeling

If you own or run a business, ask yourself one question — if you had the chance to get a leg-up on your competition, would you take it? It seems like a no-brainer, right? Yet, day after day, the number of companies either opting out, or being unaware of, predictive modeling is pretty astonishing.

In a nutshell, the concept of predictive modeling is taking historical customer data and using it to help predict what these customers are likely to do in the future. By assembling customer data through a variety of techniques, companies are able to create models. These models are, in turn, refined and ultimately applied through an overarching total strategy being employed. The goal, of course, is for the laws of probability to be tipped in your favor.

The first step, however, is getting started. Without any frame of reference, most business owners will be unsure of what to expect from most predictive modeling, let alone really good work.

Here’s a basic breakdown:

Answers Not Guesses

The data collected will be used to create the ultimate plan of action to find the right customers. It will also help figure out how to market to them, as well as figure out ways to possibly shape other available products to make them more attractive. And because the data used is based off of historical customer data, it also helps to find new like-minded customers.

Predictive modeling is all about finding out that hunches are not the way to go. Guessing only provides a 50-50 chance at getting something right. The last thing anyone should do is invest precious resources on such dicey odds.

A Better Customer Experience

Because predictive modeling is based on the idea of finding and working with the ideal customer, companies are better able to see how their operation is lacking in certain areas. Maybe their social media interaction is in need of improvement. Perhaps they’ve not done their due diligence when it comes to helping personalize communication with current customers. They may have also dropped the ball when it comes to dropping the ball on having little to no promotional campaigns. With the right predictive modeling, oversights like these will be much clearer and can be fixed.

AI and A New Era

There are a lot of companies starting to talk about whether the use of artificial intelligence is something that could benefit them in some way. As it turns out, there are a number of AI-related tools specific to predictive modeling available. As one might expect, each offers something slightly different. Still, results from these tools seem promising. What’s more, they are able to perform a plethora of tasks at once and provide an array of information for the user.

But with all things related to automation, there is one catch — you need to know what you’re doing. Predictive modeling is only as good as the people or programmer running it. Sometimes, the best business decision one can make is knowing when it’s time to get some help from a third party. Here at MindEcology, we’ve been a go-to name for this kind of help for years.

Our team of data specialists eats, sleeps, and breathes numbers. But most importantly, we want to be sure your data actually works for you. See what great predictive modeling can do for your business today. Call MindEcology, an Austin advertising agency, today.

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