It is widely known that analytics can help immensely in various aspects of a business like revenue growth, arrest customer churn, identify fraud, better forecasting and planning etc.
If the benefits of adopting analytics are so compelling then, why it is not leveraged by the companies of all sizes? Gartner says that only 11% of the organizations are able to leverage the value of analytics which mostly includes Fortune 500 companies.
The reasons for less adoption of analytics are many, like, high CAPEX required in technologies, shortage of data scientist skills, lack of knowledge of the process involved etc. With the evolution of new technologies over the last few years these challenges have been mitigated to a large extent, making it possible for the companies of all sizes to leverage analytics.
Advanced analytics that includes predictive modelling has various statistical techniques that can help the business in a number of ways like,Clusteringo Identify various customer behaviour segments and target the campaigns based on profile of such segments Cross-Sell, Up-Sello Identify the products or services that can be sold to existing customers based on their purchase behaviour, profile etc. This can lead to increase in revenue by 20-30% in the first year itself.
Customer Churn / Lapsationo Identify the customers that are likely to discontinue your product or services. Proactively run campaigns to discourage them from doing so and reduce the churn by 15-20% Value Scoringo Identify your most valuable customer through techniques like value scoring, Life Time Value (LTV) Other techniques like fraud analytics, revenue leakage etc.
With the new approach to analytics, all companies irrespective of size and constraints of budgets can leverage analytics. The ROI on analytics with this approach is very high and the returns can come in a few quarters as opposed to many years earlier. One great advantage of latest technology today is that it provides a level playing field to the companies of all sizes.
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