How Prescriptive and Predictive Analytics Change Ecommerce?
Descriptive, prescriptive, and predictive are three important aspects of every eCommerce business. You might not be aware of these terms, but certainly, you have used any two of these terms to improve the performance of your eCommerce website.In general, these three are the subsequent stages of any eCommerce website which help us find out the best possible ways to generate better leads and profits.
Descriptive is meant to examine the historical data, predictive is meant to predict the future growth of any business, and prescriptive is meant to develop effective marketing strategies as per the current business synopsis.
Now let’s compare the descriptive vs predictive vs prescriptive analytics to find out how they are changing eCommerce.
What is Predictive Analytics?
The primary purpose of predictive analytics is to make future predictions based on historical data. This focuses more on predicting what can happen in the future. This way you will make better strategies to ensure growth and minimize the risks.
Descriptive analytics skills are essential to predict the future. They are further powered by tools like Wersel Data-Hub. You will not be able to figure the potential upcoming risks if you can’t have access to the historical data.
In predictive analytics, the software is used to analyze the historical data, including past customer’s shopping patterns and behavior to predict what strategies we can opt to inspire customers to take specific actions.
Once the software gets a better idea about the customer’s shopping pattern and behavior, it then segments them accordingly to make its decision making. Some high impact tools to help with predictive analysis includes the Price intelligence tool that helps the retailer to fix the price as per the current market demands and competitive landscape. After the analysis process, your marketing team will come into action and opt for effective marketing strategies to inspire potential consumers to buy your product.
These are the reasons why predictive analysis has become a talkative subject these days. It enables the business owners to measure the upcoming risks, hence they can make safe decisions that ensure maximum growth for their business. The predictive analytics approach is mainly used in designing cities, roads, flight training programs,and so on.
The outcomes of the predictive analytics are telling you what could happen in the future. You can get an idea about the lead generations, profits, and potential clients. This way you can prevent yourself from making decisions that can halt your business growth.
What is Prescriptive Analytics?
Prescriptive analytics focuses more on empowering business owners to make risk-free and better plans utilizing the information collected through the predictive stage. In general, Prescriptive analytics takes the data we already have and uses this data to predict what could happen in the future, and recommends the best possible steps you can opt to make better marketing strategies to suit multiple consumers.
Prescriptive analytics is the progressed step of descriptive and predictive analytics procedure. It helps the markets to know the meaning of the data and how they can use this data to deliver tailored solutions to their customers.
Prescriptive analytics is an efficient tool to map the success of any business. It will collect the data and perform various operations on the data to prepare a map which will tell you what step you should take and what will be the right time to do so. Also, markets can see both real-time data as well as forecast data at the same time to make decisions that enhance the growth of a business.
Now as you know what predictive analytics and prescriptive analytics are. Now I think it is the right time to talk about predictive analytics vs prescriptive analytics.
What is the Key Difference Between Predictive and Prescriptive Analytics?
Prescriptive analytics is considered the extended version of predictive analytics. Both prescriptive and predictive analytics are advanced types of analytics processes, and each of them plays a specific role in the business's growth.
Both analyses help us predict what the future holds for us and what we can do to make something favorable happen in the future. For better decision-making, we can integrate predictive and prescriptive analytics with machine learning and web mining.
Predictive analytics and prescriptive don’t work well alone, for better outcomes, it is recommended to make use of these analytics simultaneously. As predictive analysis alone can’t keep up with the competitive market, it will require prescriptive analytics to make smart recommendations. Together they can produce some optimal outcomes. Predictive and prescriptive analytics both are important from the business point of view.
How Predictive and Prescriptive Analytics Change Ecommerce?
As mentioned earlier, both predictive and perspective analytics produce tangible outcomes and help us identify our potential customers and their shopping patterns. Through these tools, you can find out how customers think about your business and what kinds of promotional offers will work best for them, even if you can predict the upcoming demands of your customers. So if any company effectively uses these analytics tools, then they can expand their market reach and can generate better leads.
Here we have outlined a few of the benefits predictive and prescriptive analytics can produce for eCommerce.
Boost Sales and Revenue
The ultimate goals of every business are to boost sales and generate better revenue.Predictive and prescriptive analytics can help you do so in many ways. For instance, two people may agree to pay different prices for the same product. These analytics tools let you personalize your price strategies to suit multiple customers.
Allow You to Make Effective Decisions
Business is more than just selling products or services. You have to make plenty of decisions to ensure the maximum growth of your business. Predictive and prescriptive analytics will allow you to make better marketing strategies that will work best for your business.
Now you might wonder how predictive and prescriptive analytics can help you save time. As manual data analysis requires a lot of effort to create reports, however, using these analytics tools will reduce human efforts and will create reports within a brief span of time.
Predictive and prescriptive analytics can work together to produce the most beneficial outcomes. The demands for these tools are rising, more and more business owners seem interesting in opting for these techniques.