The Advantages of Predictive Analytics for Small Businesses

If you thought predictive analytics was only for big corporations, think again. Small businesses can also benefit from AI tools that are now more accessible and easier to use. In this article, we’ll explore the advantages of predictive analytics for small business owners and how you can add it to your operation with some simple steps.

What is predictive analytics?

Predictive analytics uses statistical techniques and machine learning to make predictions of future events or possible outcomes for specific situations. In simpler terms, it is a way to predict the future so that you can be prepared for what’s to come.

Benefits of predictive analytics

Predictive analytics helps small businesses stay up to pace with the ever-changing world by providing insights into customer behavior and predicting future trends. Here are three advantages that can transform into revenue:

• Identify potential risks: Predictive analytics helps identify potential threats that may occur, allowing you to focus on solving potential problems, not trying to uncover them or responding once they happen. For example, it can help identify customers at risk of losing interest, allowing you to take preventative measures and retain their attention.
• Make data-driven decisions: Data-driven decisions are based on undeniable facts, and predictive analytics can help in this area by analyzing sales data for important factors that might affect your business, allowing you to take action at the perfect time. It can also reveal the best time to launch a promotional campaign, using tools like Google Analytics, Adobe Target, or Optimizely.
• Improve customer experience: Predictive analytics can show you insights in areas where customers might be dissatisfied with the service or products. This allows you to fix these areas, helping with customer loyalty and retention, which can increase profits by up to 95%.

Challenges and AI tools to make it easier

Predictive analytics comes with some challenges when you are just starting, such as learning the system, understanding how prediction works, gathering your data, and being prepared for the costs. However, there are AI tools available to help you overcome these challenges, such as:

• H2O.ai: This tool provides a wide range of AI services, including predictive analytics. One of the big advantages of this kind of tool is the interface. It has a classic drag-and-drop system that allows users to personalize and create models with no previous coding experience. H2O.ai also comes with built-in templates that let you visualize and share the data you collect in a more comprehensive manner.
• DataRobot: This tool offers a comprehensive end-to-end platform that helps automate the entire predictive analytics process. It uses advanced algorithms to help users build predictive models quickly and easily, without requiring any coding skills.

In conclusion, predictive analytics is no longer just for big corporations. Small businesses can also benefit from AI tools that provide insights into customer behavior and predict future trends. By using these tools, small businesses can identify potential risks, make data-driven decisions, and improve the customer experience, which can ultimately increase revenue. If you want to stay up-to-date on the latest tools and not have to filter through them alone, subscribe to our daily newsletter and let us guide you through your Al journey!

Resources

• What is predictive analytics and how does it work? | Google Cloud. (n.d.). Google Cloud.
• Terreros, D. (2023, January 24). Qué es el análisis predictivo, tipos, ejemplos y herramientas. Hubspot.
• Pros and Cons of Predictive Analysis. (2022, April 7). Georgetown University Online.