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       Predictive  analytics  simply  calculates  the  consumer   Prescriptive Analytics is the final leg of your advanced
       preferences:  How  much  do  your  customers  spend  on   analytics  strategy.  With  this,  and  with  your  data  and
       your  offers  over  time?  Which  customers  are  likely  to   marketing materials, you can finally clearly define what
       respond  to  your  offers,  depending  on  the  content?  At   to do to achieve your goals or predict your customers'
       what point does a potential customer make his/her first   shopping  experience.  With  a  “Thank  you”-  page  or  a
       purchase?  And  when  is  the  next  purchase  to  be   confirmation mail after the purchase, you can promote
       expected from existing customers?                   another offer (next sell recommendation).
       Prescriptive analytics: How should we respond (to   In fact, prescriptive analytics not only anticipates what
       those potential future events)?                     will happen and when it will happen, but also why it will
                                                           happen, and suggests decision options on how to take
       Prescriptive  analytics  entails  the  application  of   advantage  of  a  future  opportunity  or  mitigate  a  future
       mathematical   and  computational  sciences,  and   risk and shows the implication of each decision option.
       suggests  decision  options  to  take  advantage  of  the
       results  of  descriptive  and  predictive  analytics.    That’s   Of course, prescriptive analytics can continually take in
       why  it  is  referred  to  as  the  "final  frontier  of  analytic   new  data  to  re-predict  and  re-prescribe,  thus
       capabilities.  And  if  you  go  into  the  prescriptive  phase   automatically  improving  prediction  accuracy  and
       not  just  with  predictions,  but  with  advanced  analytics,   prescribing better decision options, and ingests hybrid
       that's  even  better.  Using  prescriptive  analytics   data  -    a  combination  of  structured  (numbers,
       algorithms   allows   your   company   to   provide   categories)  and  unstructured  data  (videos,  images,
       recommendations  to  customers  based  on  the      sounds, texts), as well as business rules to predict what
       information  in  their  profile,  considering  the  context  of   lies ahead and to prescribe how to take advantage of
       your industry (current product portfolio, inventory, profit   this  predicted  future  without  compromising  other
       margin, etc.).
       To implement recommendations, you can e.g. suggest
       a  new  product  to  replace  a  previously  purchased   If you do not yet see the value of using a more complex
       product or offer a package with multiple  products at  a   approach  to  performance,  look  at  some  success
       reduced price. That way you get an additional buy (up-  stories,  where  some  companies  reportedly  have  seen
       sell),  or  you  make  offers  that  could  interest  your   increases  of  up  to  30%  in  CTR  and  20%  in
       customers  according  to  their  purchase  history.  If  you   engagement when using advanced analytics, but let me
       show frequently purchased products,  you increase the   tell you that limited analysis capabilities are a thing of
       likelihood that cross-selling opportunities will be noticed.   the past, as all tools are now interconnected. ◊

                                                                                        By Daniela La Marca

                                                 MediaBUZZ Pte Ltd - Independant ePublisher for Asia
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