Predictive analytics helps automate "decision strategies"—the decision logic or ruleset that defines the steps, in order, that will be applied in making a given customer decision. For example, one step in a collections strategy may be to use analytics to segment customers by their expected collection amounts and vary treatments accordingly. Automating decisions leads to greater speed and consistency. Businesses that automate customer decisions using rules-based systems can gain added benefits from predictive analytics. Predictive analytics augments rules by:
- Improving the precision of customer segmentation, leading to more targeted actions
- Vastly simplifying rulesets, replacing dozens or even hundreds of rules
- Bringing empirical data analysis to business decisions, producing actions that are literally calculated to succeed
Rules management systems make decisions faster and more consistent. Predictive analytics also makes those decisions more precise and relevant. This helps you not only increase efficiencies but take action to boost revenue.