Part 7/12:
Moving beyond hindsight, organizations use predictive analytics to forecast potential churn, lifetime value, and preferred shopping habits. For example, predicting a 40% likelihood of churn based on store stock issues allows proactive retention strategies. Similarly, insights into customer preferences—such as impulsivity or risk aversion—inform targeted campaigns.
Foresight: Acting on Predictions
This predictive capability enables the deployment of tailored marketing campaigns and personalized offers. Anticipating when a customer might churn or identifying up-sell opportunities helps organizations allocate resources more effectively, ultimately improving customer loyalty and lifetime value.