Drive Profitable Relationships with Predictive Analytics
May 14, 2009
By Jessica Kostek, TMCnet Channel Editor
A new white paper written for senior executives, by SPSS (News - Alert) and Peppers and Rogers Group, argues that using predictive analytics can drive organic growth. The white paper describes five ways to achieve organic growth and explains two different methods for measuring financial return.
Richard Hren, director of product marketing for SPSS said that with predictive analytics an enterprise is then enabled to utilize organizational data that is presently available in addition to data to collect in the future.
“It uncovers the patterns that interrelate between all that customer data, using both predictive and descriptive techniques, and then it ultimately uses the results of those analyses and insight to really drive improvement in organizational performance,” Hren said.
The white paper emphasizes that growth is an essential part for any business, especially growth from customers. Organic growth is defined by Investopedia as “the growth rate that a company can achieve by increasing output and enhancing sales” This definition excludes any profits or growth required from takeovers, acquisitions, and mergers.
“In most cases, you want to choose the initiative that actually creates the most organic growth for your business,” Don Peppers, founding partner, Peppers & Rogers Group, said,” and you can only create organic growth from customers.”
The white paper, lists the five ways to achieve organic growth as Classification, Segmentation, Targeting, Prediction and Action.
To read more about these methods check out the white paper here.
Predictive analytics are important because according to IDC’s (News - Alert) Predictive Analytics and ROI: Lessons from IDC’s Financial Impact Study, “The median ROI for the projects that incorporated predictive technologies was 145 percent, compared with a median ROI of 89 percent for those projects that did not.”
In this economy, growing a business is essential and the more ideas that come forth mean the more that could possible be implemented within a strategic business plan ensuring success for the future.Jessica Kostek is a channel editor for TMCnet, covering VoIP, CRM, call center and wireless technologies. To read more of Jessica’s articles, please visit her columnist page.
Edited by Jessica Kostek