Why is Predictive Analytics' critical to business survival in the Pandemic ?
Updated: Oct 17, 2021
Predictive analytics have been widely deployed in business and industry to help identify future risks and opportunities. The technique makes use of data mining, artificial intelligence (AI), statistics, modelling, and machine learning to make predictions about future events and outcomes.
For businesses and organisations, the tools are invaluable to help them make informed decisions, rather than rely on opinions and guesswork. They can be proactive in their strategies, allowing for more effective and profitable outcomes. Once the preserve of multi-national high-tech companies, the tools are now becoming a part of everyday business.
Maximising resource efficiency
Predictive analytics is widely used in the fast-moving consumer goods (FMCG) sector to anticipate consumer demands and behaviour. They can be used across marketing, logistics, pricing and promotion, and to increase customer retention and engagement levels.
Because the FMCG sector sells products in large quantities which have a short shelf life, it is crucial to forecast as accurately as possible what the consumer demand will be at a particular location and time, to avoid waste and lower profit margins.
By using advanced algorithms which can analyse and merge large amounts of data, predictive analytics will identify potential areas of oversupply or undersupply.
Traditionally, the huge volume of transactions and goods involved in the FMCG sector has made analysis and prediction very difficult, and fraught with error. However, advanced techniques mean that data can be gathered from multiple sources and presented in a manner that is very easy to interpret.
The predictions are far more reliable and accurate than past methods, and make a huge difference when goods with a short shelf life are involved. More accurate sales forecasting also makes it easier for marketers to know what products to promote at a particular time, which consumer groups to target, and which types of the campaign will be most effective.
Analytics in the FMCG sector can also provide helpful insights that allow businesses to dynamically price goods or discount goods that are nearing their best before date.
Always on FMCG Category Forecasting and Scenarios for 2021-23
As the pandemic is. continuing to impact consumer behaviour in the next 24 months with various waves, changing mobility and health concerns and impact on the economy - unemployment, PDI and so on, businesses are more in need to use predictive analytics, to understand scenarios and drivers of growth.
If you are interested in knowing more, read further on CatmanAi, a Singular Intelligence product that provides always-on Forecasting, evolving drivers of growth and the ability to easily simulate scenarios for smarter decisions. Contact us for a demo.