Predictive Analytics: How can it help Retailers

Introduction:

Predictive Analytics is a much concrete way to know one’s customer. In this era of Big Data knowing one’s customer is an important thing. The Retailers who know their customer can take a much smart decision and can have a more profitable outcome than those who have a very little knowledge about their customers. Predictive Analytics help in making a relative, personalized time for the customers. Every Retailer has a certain goal and on the other hand every Customer has certain desires. These predictive analytical methods help to bridge the gap between the customers and retailers. This analytical method helps the retailers in knowing their customer’s needs and wants in a much better way.

predictive analytics for Retail

Case Study:

There are various problems that the Retailers need to be dealt with. A most common problem among them is personalization of a product or service according to the customer’s behavior. In doing so the retailers forget one thing that the behavior of the customer’s differs. The retailers sometimes generalize the customer’s behavior and plan accordingly. The result or the outcome in this case is not up to the mark. The customers whose behavior seems to be same might differ in their desires or want.

On the other hand the retailer who takes care of their individual customer’s demand by predictive analytics tool and wish enjoys a much higher loyalty and profitable margin than the others. The sustainability of these retailers on the market is also much higher.

Usefulness of Predictive Analytical method:

  • Knowing the customers in a better way
  • Personalization of the customer’s product or service
  • Help in getting the fullest information about a customer’s changing behavior.

The Retailers who can think and take smart decision about a customer’s need and demand are the one who will sustain in the long run. Predictive Analytics is one of the important tool through which the customer’s insight can be known.

Predictive Analytics does not only about know the customers it is much beyond that. It helps the retailers in not only getting information about why they have lost a customer but it also help in building the ways through which the customers can be retained to their stores.

Stages of Predictive Analytics:

The method of predictive analytics must go through these four steps to provide a fruitful data to the retailers. The stages are:

  • Predictive Modeling
  • Decision Analysis and Optimization
  • Transaction Profiling
  • Predictive Search

Benefits of Predictive Analytics:

The Predictive Analytics method act as the fuel that helps the Retailers to obtain a proper business platform. It helps in bridging the gap between the customer’s wants with that of what the business wants. It helps the retailers to take a much smarter business decision.

Conclusion:

The Predictive Analytical Method helps in getting a much accurate and profitable business outcome. Predictive Analytics is an important customer analytical tool. The customer insight can be very well known through this predictive analytical tool.

Thus to be a smart Retailer Predictive Analytics is a much needed thing. Predictive Analytics for Retail is much in demand in this scenario of Big Data.