Wouldn’t it be great if your organization had a crystal ball to predict what your customers will buy and when they will buy it? Imagine the power you’d hold in your hands. Unfortunately, crystal balls exist only in fiction and fairy tales. However, predictive analytics (PA), when used effectively, is a darn close substitute. In fact, some would argue that predictive analytics is more valuable than a crystal ball, because it uses actual data that can be reused across the organization for multiple purposes. http://info.4imprint.com/bluepapers/predictive-analytics/

1. Predictive Analytics
The corporate crystal ball
Should we implement
predictive analytics?
I see a bright future …
68%
145% average ROI is realized
realize a
competitive advantage
% report a positive impact
86
on the organization
% improvement in operating
1
90%
report a positive return
on investment (ROI)
6%
profit margins
increase in
customer retention
I see darkness coming …
2%
1%
decline in profit margins
drop in customer
retention rate
What’s in store for
your organization?
$
Predict market trends
and customer needs
Create customized
offers
Foresee changes
in supply and
demand
Predict how market prices
will impact production
Proactively manage
workforce by attracting
and retaining talent
Predictive analytics
tells your fortune
He’s ready to
terminate service
She’s ready to
buy
He may buy after a
They may benefit from
call from your sales rep
a cross-sold product
3 predictive analytics models
Predictive
model
analyze past to
predict future
Decision
models
Descriptive
models
mathematical equations
consider all elements of a
decision to predict results
analyze groups of people
rather than individuals to
predict behaviors
vs.
Predictive analytics
at work
CP D
Best Buy
®
Redesigns stores to
appeal to buying habits
of 7% of its customers
that are responsible for
43% of sales
Olive Garden
®
Manages staff more effectively
and significantly reduces food
waste after analyzing data on
staffing needs and food
preparation requirements
The Chicago Police
Department
Uncovers crime patterns and
determines when and where
crimes are likely to occur
Predictive analytics helps organizations move beyond
what happened to determine what will happen.
www.4imprint.com
Infographic created by www.4imprint.com, based on the
Predictive Analytics Blue Paper®. Download Blue Paper at:
http://info.4imprint.com/bluepapers/predictive-analytics/
Sources
1. “Transform Your Future with Predictive Insight.” Predictive Analytics. SAP: The Best-Run Businesses Run SAP, 2012. Web. 11 Aug. 2013. < http://tinyurl.com/lz79mgb>
2. Siegel, Eric. “Seven Reasons You Need Predicative Analytics Today.” Predictive Analytics World. IBM, 2010. Web. 19 Aug. 2013. <http://www.csiltd.co.uk/PDFS/BI/Predictive%20analysis.pdf>.
3. Kardon, Brian. “Predictive Analytics: The Power Behind Next-Gen Marketing.” Predictive Analytics:
4. Rich, Dave, and Jeanne G. Harris. “Why Predictive Analytics Is A Game-Changer.” Forbes. Forbes Magazine, 1 Apr. 2010. Web. 11 Aug. 2013.
http://www.forbes.com/2010/04/01/analytics-best-buy-technology-data-companies-10-accenture.html
5. Rosencrance, Linda. “Using Predictive Analytics to Fight Crime.” TIBCO Spotfire’s Business Intelligence Blog, 13 Oct. 2011. Web. 19 Aug. 2013. <http://spotfire.tibco.com/blog/?p=8148>.
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