There are lots of ways to predict the future. One way is to use the past. That is, take data from history and use it to predict what the future might hold. It’s called predictive analytics.
Retail businesses have been doing this for years. If you have a particular product that does better in July than at any other time of year, then you can use that information to plan for your next July. Stock up on that product, merchandise it well in your stores, and make the necessary arrangements for the rest of your inventory while you’re at it.
Predictive analytics can be used for Web businesses too. Even service businesses.
It can also be used for other areas of your business, not just sales.
Let’s say, for instance, that you get a back-to-school spike in August every year that requires you to add new store staff. That’s important information. Knowing that, you can start preparing in June and July for interviewing potential employees and beefing up your staff for the August surge.
There’s no limit to what predictive analytics can be used for in your business. You can use it to predict payroll expenses, sales spikes, traffic spikes on your website, maintenance expenditures, or any part of your business that you want to track and measure. And you can use it to streamline your business processes, making your business more profitable.