When Sir Francis Bacon, coined the aphorism "Knowledge is power", he didn’t foresee a 21st century where technology and data science would more automatically and immediately turn knowledge into insight. Today, the phrase “Prediction is Power” may be more appropriate.
My colleague Mike Gualtieri works with applications developers and has been looking at the power that predictive analytics can infuse into a myriad of business applications these developers may encounter.
What I found fascinating about his recent research is that the example he chose a marketing example (Figure 1, subscription required) to demonstrate this power.
At Forrester, we define predictive analytics as:
Techniques, tools, and technologies that use data to find models — models that can anticipate outcomes with a significant probability of accuracy.
Think about it! If anyone could consistently and accurately predict the future, then they would never make a bad business decision. And I think marketers – due to the nature of our profession – suffer more acutely from the need to make decisions where we can’t always anticipate the outcome with hardly ANY degrees of accuracy. It’s marketing that John Wannamaker lamented when he talked about not knowing which half of his advertising dollars were wasted, right?Read more