Have you ever wondered how is your system able to identify high-value clients out of thousands in the list? Or how you can easily predict results now like sales and type of content your customers will love based on historical data?
The science behind it is called Machine Learning (ML). It is a subset of Artificial Intelligence where algorithms can make it easy for people to perform and finish some tasks that involve big data analysis.
This is why many believe that machine learning algorithms will definitely impact people’s lives and industries. So, it’s also important for entrepreneurs to have some grasp of what it is exactly and how they can use it to their advantage. Here are some ideas:
It’s a filtering system that analyzes huge amounts of data related to a user’s past purchases or transactions. Using this information, the recommender system will be able to suggest things that a user is likely to buy next.
Set prices based flexibly based on your customers’ level of interest, past behaviors, and demands without going through lots of data manually. You can use machine learning to optimize your prices based on strategies that will give you maximum revenue.
Customer Lifetime Value (CLV)
Want to determine who among thousands of your customers can be considered as VIPs? CLV modeling is a technique that can be used to identify the types of customers you would wish to retain for their loyalty and spending habit.
What ML does, in this case, is give you a predictive analytics report that you can use to create a more accurate marketing strategy to keep those customers coming back for more.
Without a doubt, machine learning is key to making something big and useful out of your big data. It can help you set dynamic prices, identify and retain high-value customers, create analytics reports, and ultimately generate more profits.