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In accounting, your Net Operating Profit number tells you nothing about causes. Siemens and Unilever, like all the companies I know, use several metrics, data analytics, and KPIs to drive conclusions. For instance, a company’s operating profit number is useless without additional metrics and other supporting information.
Predicting Trends and Driving Growth Once you’ve mastered the basics, advanced analytics can take your strategies to the next level. If tracking behavior is about understanding the present, predictiveanalytics is about planning for the future. If CAC is higher than LTV, it’s a red flag for your profitability.
Your CRM (customer relationship management) system is typically used by all of these parties. Predictiveanalytics managers are collecting customer data and creating algorithms for real-time and what-if scenario right-sizing of information, offers, and solutions.
However, bogged down by the lack of functionality within CRM, sales teams are more focused on administrative duties rather than selling or building those relationships. Increased synergy and visibility in technology across the organization also provide data to be leveraged by artificial intelligence to provide predictiveanalytics.
That’s the behavioral aspect of analytics. The predictiveanalytics tell you “who” to target, but the behavioral data tells you “when” to target them. How many non-profits would like to do some kind of survey, but they don’t have a survey tool? This is really close to my heart.
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