What is Predictive Analytics?
Whenever the topic of Big Data comes up it is often in association with predictive analytics. So, what exactly is predictive analytics? Predictive analytics is when you take existing data that you have, such as close rates from the previous month, and extract information and data to determine possible future outcomes and trends. Predictive analytics is a valuable tool that can be utilized by any industry. Using it allows for company’s and teams to reduce risks and increase revenue.
How does predictive analytics work?
Once you collect data you begin reporting and analysis and determine what happened in that data set and why. Once that's completed you start monitoring what you are currently doing to determine what is happening now in relation to your previous data set. After that, predictive analytics comes in and you can determine what will happen in the future and take a course of actions based off of that.
What is the process for predictive analytics?
The first step should be to determine what you are looking at.
Once you know what project you are focusing on you should collect your data so you have something to look at.
Analyze your data to determine your trends and patterns.
Determine what needs to be changed and implement your decision.
Predictive analytics should be an ongoing process, so you should repeat the steps every month, that will aid in making business and sales decisions.
Predictive analytics and sales
When it comes to your sales team, predictive analytics can be a valuable tool. It can help you determine the best ways to keep filling your pipeline. Predictive analytics can provide access to data that will help your team know which prospects they should be focusing on. This can be done by looking at past data and identifying trends.
For example, you can look at data and see that you have a sales rep who keeps their funnel really full but doesn’t close on many deals. Predictive analytics will help determine their close rates for the current month. If the predicted close rate is lower than ideal you can sit down with your sales rep and determine a new course of action to determine where they are falling short and what they can change to close more deals.
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