In our previous article titled Machine Learning 101: The Introduction, we have discussed about what is machine learning, how it works, and also its processes. Now, we will discuss about how machine learning as the most important technology for the business. Machine learning is proven to be able to help companies increase efficiency, improve customer relationships, and boost sales.
Researchers estimate that machine learning has the potential to add $2.6 trillion in value to the marketing and sales industry by 2020, as well as another $2 trillion to manufacturing and logistics fields. The International Data Corporation estimates that spending on machine learning will reach $77.6 billion by 2022.
Therefore, businesses that implement machine learning as their digital innovation strategy will gain several benefits that will be very beneficial for their business. Here are 5 benefits of machine learning that business can gain to boost their business growth.
5 Benefits of Machine Learning to Boost Business Growth
1. Increasing Customer Satisfaction
ML can help in improving customer loyalty and also ensure superior customer experience. This is achieved by using the previous call records for analyzing the customer behavior and based on that the client requirement will be correctly assigned to the most suitable customer service executive. This drastically reduces the cost and the amount of time invested in managing customer relationship. For this reason, major organizations use predictive algorithms to provide their customers with suggestions of products they enjoy.
2. Customer Lifetime Value Prediction
Customer lifetime value prediction and customer segmentation are some of the major challenges faced by the marketers today. Companies have access to huge amount of data, which can be effectively used to derive meaningful business insights. ML and data mining can help businesses predict customer behaviors, purchasing patterns, and help in sending best possible offers to individual customers, based on their browsing and purchase histories.
3. Improving Cyber Security
ML can be used to increase the security of an organization as cyber security is one of the major problems solved by machine learning. Machine learning is able to detect spams which have the potential to harm the business. Previously, email service providers made use of pre-existing, rule-based techniques to filter out spam. However, spam filters are now creating new rules by using neural networks detect spam and phishing messages. Therefore, ML allows new-generation providers to build newer technologies, which quickly and effectively detect unknown threats.
4. Improves Precision of Financial Rules and Models
ML also has a significant impact on the finance sector. With large volumes of quantitative and accurate historical data, ML can now be used in financial analysis. ML is already being used in finance for portfolio management, algorithmic trading, loan underwriting, and most importantly fraud detection. In addition, according to a report on ‘The Future of Underwriting’ published by Ernst and Young, ML facilitates continual data assessments for detecting and analyzing anomalies and nuances. This helps in improving the precision of financial models and rules.
5. Recommending the Right Product
Product recommendation is an important aspect of any sales and marketing strategy including upselling and cross-selling. ML models will analyze the purchase history of a customer and based on that they identify those products from your product inventory in which a customer is interested in. The algorithm will identify hidden patterns among the items and will then group similar products into clusters. It will enable businesses to make better product recommendations for their customers, thereby motivating product purchase.
Machine learning in business proves to be useful in enhancing business scalability and improving business operations. The 5 benefits of machine learning above can be obtained by organizations if they understand how important it is to implement machine learning as their digital innovation strategy to boost their business growth and be more competitive in this digital transformation era.
Find out more about how business can utilize Machine Learning as a Digital Innovation Strategy to boost their business growth and create more value to customers!
Reference:
de Marco, N. (2019, September 1). How Machine Learning Is Boosting Business Growth. Business.Com. https://www.business.com/articles/machine-learning-boosts-business-growth/
Flatworld Solutions. (n.d.). Benefits of Machine Learning in Business - Flatworld Solutions. https://www.flatworldsolutions.com/IT-services/articles/how-machine-learning-can-help-your-business.php
