15 Ways Predictive Analytics Can Help Businesses Boost Their CX

Predictive analytics – using data to predict future outcomes – has helped businesses better understand what their customers need. Customers respond well to a business when they sense that their needs are being heard and met. Anticipating your customers’ buying behavior will more likely help retain a loyal customer base. Fifteen members of the Expert Panel of the Forbes Technology Council discuss below the ways businesses can utilize predictive analytics to improve their customer experience.

Analyzing Customer Behavior Patterns. “Businesses can use predictive analytics to improve the customer experience by analyzing customer behavior patterns. This can help a business anticipate its customers’ needs and personalize interactions, experiences and offers. This intelligence can also help businesses provide proactive solutions to customers based on their inferred and expressed needs, ultimately enhancing satisfaction and loyalty.” – Vasudeva Akula, VOZIQ AI
Determining System Failures And/Or Cyber Risks. “Using predictive analytics to determine system failures and/or cyber risk is an area of importance. If organizations can better predict cyber results, it positions them to reduce exploits and proactively manage vulnerabilities. The outcome has a direct effect on customers. Further, the data can show which customers may discontinue the business relationship due to costs, loss of revenue or a lapse in system availability.” – Dewayne Hart, SEMAIS
Personalizing The Customer Experience. “Predictive analytics can be used to personalize the customer experience. By analyzing a customer’s past behavior and preferences, businesses can anticipate the customer’s needs and provide personalized recommendations. This creates a tailored experience for each customer, leading to increased satisfaction, loyalty and potential sales, thereby improving the overall customer experience.” – Indiana (Indy) Gregg, Wedo
Managing Dynamic Pricing And Promotions. “Similar to how social media platforms use predictive analytics to determine which posts and ads users see, businesses can leverage predictive analytics to enhance the customer experience through dynamic pricing, promotions and personalized offers. This aligns with customer preferences and optimizes revenue, benefiting both customers and businesses.” – Sheraz Ahmed, STORM Partners
Customizing Offers And Content. “One of the best ways to use predictive analytics is to create personalized offers and content lists for your customers. Every group of visitors has a unique set of goals and pain points. Carefully reviewing data and curating campaigns around each segment’s needs will help you create a positive experience and turn website visitors into customers.” – Thomas Griffin, OptinMonster
Identifying Churn Risk. “Businesses can leverage predictive analytics to identify high-churn-risk customers and pay attention to them. Net promoter scores can determine if customers would recommend your brand over the competition. Predictive analytics can also anticipate shifts in customer sentiment to help the customer support team know who requires special attention or incentives.” – Raghu Ravinutala, Yellow.ai
Understanding How Customers Leverage A Product. “Predictive analytics can help leaders create the ultimate tech roadmap and help a technology business optimize the customer experience by helping leaders understand how customers are leveraging the company’s product or service. It enables tech businesses to predict what customers are going to need to drive their objectives, based on data and trends the system has previously deployed. This predictive state, based on tactical successes and data metrics, shows where the tech needs to go.” – Michael Koch, HubKonnect
Delivering Real-Time Experiences For Customers. “Predictive analytics can help companies deliver real-time apps and experiences to their customers. By analyzing the context of historical data and patterns, you can not only anticipate customer needs, but also provide updates and/or results in the moment they need them. Now, we have the opportunity to combine predictive analytics with generative AI, which can simplify and enhance the communication of information.” – Chet Kapoor, DataStax
Decreasing Service Outages. “One way that businesses can use predictive analysis to improve the customer experience is to perform an “AIOps” historical review of all of their incidents and service outages over the last 12 to 24 months. This type of holistic analysis will reveal trends around solutions that experience more outages than others as well as common outage root causes, which will influence implementation changes across the enterprise.” – Mark Schlesinger, Broadridge Financial Solutions
Understanding Customers’ Unmet Needs. “Predictive analytics can be used to provide a better picture of a customer’s unmet needs, proactively prescribing the next best action for teams to take before the customer service agent or customer even knows it themselves. Partnered with real-time speech analysis, predictive analytics can prioritize and prescribe actions to be taken to improve calls and help team members improve overall interactions.” – Christopher Rogers, Carenet Health
Onboarding New Users More Effectively. “Predictive analytics are most powerful when coupled with descriptive analytics. Imagine defining the prototypical user journey within your product, informed by thousands of historical user instances, and marrying that with a new user’s onboarding. The descriptive “what’s happened” nudges the predictive “where to next” as new users navigate the happy path toward full adoption of your product.” – Ken Babcock, Tango
Anticipating Customer Orders. “Predictive analytics can drive anticipatory shipping. It can analyze customer data, purchase history and behavior patterns to anticipate customer orders. This allows businesses to proactively ship products to distribution centers or directly to customers’ locations, reducing delivery time and enhancing the customer experience.” – Emmanuel Ramos, OZ Digital Consulting
Analyzing Customer Sentiment. “Sentiment analysis uses predictive analytics to analyze customer feedback and sentiment from social media, reviews and surveys. By understanding customer sentiment, businesses can identify areas for improvement and promptly address any issues or concerns. The potential benefits of SA include improved customer satisfaction, better brand reputation management and increased customer loyalty.” – Cristian Randieri, Intellisystem Technologies
Calculating CLV. “Predictive analytics enables a business to calculate the customer lifetime value for each client, guiding leaders in efficient resource allocation. It helps identify high-value customers, who can be targeted with personalized marketing campaigns, enhancing customer retention and profitability.” – Amitkumar Shrivastava, Fujitsu
Targeting Messaging And Marketing. “Predictive analysis on market trends and typical business struggles allows for targeted messaging and marketing of your business to the right prospects, at the right time. Nothing is more important than sales to a business. Empowering sales efforts through trending and predictive metrics means you’ll end up with hot leads and interesting offerings.” – Tom Roberto, Core Technology Solutions

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