You are Participating in Predictive Analytics even When You Buy Bread
If you buy your own food you are probably taking part in predictive analytics without even realizing it. This is essentially the collection of information from you to predict new trends and patterns in the future. Grocery stores use this technology heavily and you can see an example of it in almost every single major store around the country. You may be surprised at how these stores use your information, and how useful these analytics truly are.
Predictive analytics is the practice of collecting massive quantities of data and then crunching the numbers to find patterns. These patterns are used to predict future patterns in things that people will buy. This gives stores a basic ability to tell the future and take advantage of trends to earn more money.
The stores use a few different methods to gather information from you. The most basic method they rely on is keeping track of every purchase that is made in a major database. All of this information can be used to guess the quantity of products that will be purchased the next week and the next month. This is how most stores are able to keep the right items in stock regularly.
A simple bonus card or club card is another source of information to these stores and it is why tghey are willing to offer a small discount or some other perk to those who participate. They learn about what families buy for themselves specifically. They can also match items to demographics in some instances if they collect that information.
Grocery stores are smart with their marketing and they make layouts using this information to maximize the number of items sold. When they figured out that most people buy both bread and milk at once they began separating the two. Now you need to walk around the whole store to get both items. This means you see most of the store with each visit and you will probably buy something else along the way to the important items.
Most stores will also rely on surveys to get useful information but a much smaller amount of information is gathered in this manner. This can be used to help the stores figure out which items to sell in the future and how to expand their offerings.
Now when you shop at a grocery store you’ll think about the many ways you are providing valuable information to your local establishment. This information keeps them competitive and is part of staying in business today.
If you run a business you should consider predictive analytics as well. This technique can be applied to most markets successfully and is worth considering. It will improve your profits while helping you keep up with trends more effectively. While it is complicated, the cost to start this practice often isn’t that much.
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