From the Lab
Predictive Analytics Provide Big Payouts For Early Adopters
I was reading up on analytics technology today and ran across an interesting article at TDWI (The Data Warehousing Institute) which surprised me. It was surprising due to the fact that it was a year old but was reporting the same results as today: predicitve analytics solutions are still novel to many companies and unknown to even more. Even after dozens, if not hundreds, of successful case studies show how predictive analytics are a low-effort, high ROI solution to help a company achieve strategic goals:
[P]redictive analytics can yield a substantial ROI. Predictive analytics can help companies optimize existing processes, better understand customer behavior, identify unexpected opportunities, and anticipate problems before they happen," Eckerson writes. For six years running, he points out, a majority of TDWI’s annual Leadership Award winners have used predictive analytic solutions to achieve noteworthy business results.Before we created our predictive analytics solution for email marketing we knew the benefits of predictive analytics solutions and we realized that marketing has many metrics and data points as well as a very strong set of historical data which we can and do use to build solid, accurate models of customer behavior and desire. Why are users of predictive analytics still considered Early Adopters? In other companies the problem usually starts with data integration which is typically a long, tedious ordeal for all involved. A client usually tries to find the necessary data, then meetings are setup to discuss what the data is what is needed and how to deliver it. Then many more meetings are setup and take place to discuss what is missing and how dirty or clean the data is. Then the models are built and implemented. Call it a month before any benefit is realized. However, we have already done so much behind the scenes data analysis and model building that we don't sequester our customer's time and resources from normal business tasks with a long, drawn out data integration process as I described above. Our fast (~ 1 week) time to usability really removes one of the biggest barriers of using a high-ROI predictive analytics solution. If you want to benefit from our experience and realize the usefulness of analytics for market segmentation, behavorial analysis or email marketing contact us. I am sure we can help.