Predictive Analytics: Do They Work?
Data mining and predictive analytics have been used to complete many tough tasks, such as cross-selling, direct marketing and fraud detection, in different types of businesses. In fact, where there is any type of data warehousing there should be implementation of a business intelligence program that includes predictive analytics to some degree. However, predictive analytics are still not commonly employed in web analytics. With this article, I’m going to explore the possibilities of predictive analytics in web analytics.
About Predictive Analytics
Basically, the main idea of predictive analysis is to use past data to predict future events. The statistics models is used to capture relationships among many factors to allow assessment of risk, determine market patterns, or predict potential opportunities for growth.
Why Is It Difficult to Include in Web Analytics?
Available Predictive Web Analytics
Traffic prediction also is a feasible possibility for implementing predictive analysis in web analytics. Because visitor traffic is time series data and relatively cleaner than the other metrics we get from the web analytics tool, many statistical models could be used to analyze it and forecast future traffic based on past data. Here is a mobile traffic prediction example we did for a client. We employed a polynomial regression model to forecast future mobile traffic.
Web analytics Needed for Multichannel CRM
Many companies now have realized that basic click stream analytics don’t tell the whole story. They are looking for a more intelligent way to find hidden customer behaviors. In order to implement predictive data analysis for web data, they need to expand their web analytics strategies and integrate web analytics with CMS (customer relationship management) systems.
With multichannel CRM, aggregated web data could be integrated into offline channels and provide great insight, even from simple analysis. It would enable online analytical processing (OLAP) to produce historical perspectives on customer acquisition cost, cost per conversion, etc. And combining web analytics with predictive analytics, such as data mining, could provide both historical and predictive insights.Tweet