Artificial Intelligence is one of the buzzwords in the world right now. What a technology AI is, and over the years, its power will shoot up. In the coming time, we are sure to witness the use of AI in almost all fields. So it’s freaking robust technology.
It’s not just big companies who take advantage of this advanced technology. It’s you, I, and everyone who can take advantage of this rapidly growing superpower.
You can use AI to your advantage.
There are tons of fields where AI is being used today. People and companies already see a significant difference in their decision-making and their revenue and profits.
But in this blog, let us stick to the application of AI for analytics and performance management. Trust me; you will be amazed after reading this article about AI, which is an analytical marvel.
First, I want to make this article a bit beginner-friendly so let us first understand the basics of what AI is. In case you know already, skip to the next topic.
What is Artificial intelligence, a.k.a AI?
Artificial intelligence (AI) is the foundation for simulating human intelligence processes by developing and deploying algorithms in a dynamic computing environment. AI is an attempt to make computers think and act like humans.
AI is defined as the “science of making machines intelligent.” This means that we can train machines to mimic human intelligence. So we can teach them to see, hear, speak, write, and move.
AI combines machine learning, natural language processing, deep learning, natural language generation, etc.
Though humans build AI, they can learn from past instances and train themselves accordingly. AI trains itself at exponential speed and makes jobs easy for humans or, in the future, might even eat the jobs of humans.
But let’s not get you frightened, and move to the next topic.
Analytical Power Of AI (Artificial Intelligence)
The power of AI enables you to use the data like never before. The data you already have is a goldmine that can get you tremendous benefits.
AI contains technologies that give you patterns and insights from a large amount of data. The great thing about using AI for analytics is that it uses all these insights to make predictions, learn from the past, and improve.
As a result, using AI for analytics is ideal for anyone who makes decisions based on analytics data.
With data analysis using tools like Google Analytics, automation platforms, business intelligence systems, content management systems, and customer relationship management systems, leveraging AI’s benefits becomes much easier.
Big companies like Facebook, Google, and Amazon over the years have used the power of AI for analytics. These big MNCs have a massive amount of big data generated thanks to the internet and digital activities. This data acts as fuel for AI. With this big data, we get better and better insights over time.
Let’s understand with a relatable example today; Netflix and YouTube use AI to suggest the relevant content. Amazon uses AI to show you relevant products, and the list goes on and on.
Jargons of AI For Analytics
#01 Predictive Analytics
As the name suggests, predictive analytics means using past data to predict the future. Predictive analytics is vital for decision-making in any business.
According to Mckinsey, Digital predictive analytics can reduce the errors in supply chain networks by 30 to 50%, which is a huge improvement.
With predictive analytics, you can forecast the demand for the product based on parameters like available stock, past purchases, seasonal trends, customer behavior, etc.
It was earlier entirely done by data analysts, but now with AI, the process has become much faster and more accurate, thus making the analysis much easier.
#02 Perspective Analytics
Perspective analytics and prediction also tell you what to do in the future, and AI is also used in this.
#03 Augmented Analytics
Augmented analytics automate certain parts of the analytical process that would have required a data scientist or a team of data science experts.
It involves processes like getting insights from data sheets, specific tasks related to data preparation, etc. It reduces the job of humans and thus makes analysis easier.
#04 Descriptive analytics
It uses historical data to describe what has happened. All AI tools are embedded with descriptive analytics.
#05 AI for sales conversion
AI is no less than a boon for increasing sales. Its application in sales is humongous and can drive tons of profit if used smartly.
Big companies like Netflix, Amazon, Google, etc., have increased their sales significantly using the power of AI.
These companies recommend products to you with the help of AI, and then you end up buying them, enabling them to increase their profit.
A combination of AI and machine learning find patterns using a large amount of data and uses these patterns to make future predictions. Obviously, over time, it gets better and better.
This means that sophisticated AI can analyze customer and prospect data, predict which prospects are most likely to close, recommend the most critical sales actions, forecast results, optimize pricing, and do many other valuable tasks.
Use Cases Of AI in Sales
#01 Sales Automation
Tedious tasks get automated with AI, thus enabling you to focus on more important work. You can do tasks like managing your calendar, scheduling meetings, assessing team pipeline, etc., automatically, including using your historical data to make decisions.
Customers today want personalized service. According to one of the reports by Accenture, 4 out of 5 customers love personalization and would purchase a product from the brand that offers them personalization.
Another report from Epsilon also states that 80% of consumers would purchase a product from a brand that offers personalization.
So personalization is directly proportional to sales and, ultimately, the firm’s profit.
One of the great examples of personalization is Starbucks, which increased its customer spending by 300% by adopting an AI personalization system. It sends out 500k emails unique for each person, which offers customized rewards, free drinks, points, and more to customers, making them satisfied and thus increasing sales and profits and sales for Starbucks.
#03 Sales Forecasting
Artificial intelligence systems can predict or forecast outcomes based on historical data to inform future outcomes.
The accuracy of future sales predictions is determined by the system used and the quality of the data. However, with the right inputs in the past and present, AI can predict who is most likely to buy in the future.
Predictive forecasting can also generate internal value for sales teams with the help of Customer Churn Prediction Using AI.
Customer churn is an essential parameter, and it measures the rate at which customers stop doing business with an entity.
Customer churn prediction helps an entity determine the possibility of customers leaving or stopping doing business with an entity.
To calculate, just divide the number of customers leaving the business by the total number of customers at the company’s start.
AI fast-tracks Customer churn prediction. As with AI for analytics, AI uses the data and trains itself, and helps the business predict how many customers are likely to discontinue using their product and service, thus enabling the company to prevent or reduce churning.
Using AI on your website, you get these benefits:
- You’ll save money because you’ll be spending less time on various aspects of website management.
- Enhance customer experience by using AI to analyze data and provide a more streamlined experience to your visitors.
- Save resources because AI can do many things that non-developers cannot.
Perhaps most importantly, AI, by definition, will become “smarter” as it is used more frequently. This means that the user experience on your website will continue to improve as its AI becomes more capable of handling your visitors’ needs.
Enhance the Customer Experience With a Chatbot
The best part is a chatbot can work 24/7, and everything is automated, with only minimal human work. It also increases your chances of conversion. Moreover, visitors do not have to wait long for a response to their queries, and it will save you and your team the trouble of having to answer the same basic questions daily.
There are two kinds of Chatbots available in the market, the first being the standard ones and the second that AI manages
I would strongly recommend you go for the AI one as, with time, these chatbots learn and interact in much better ways, leading to more sales and conversion.
AI-enabled chatbots will take the space of almost every industry that requires human interaction.
As a result, they will become smart over time. So using AI chatbots is a good idea to get an edge against your competitor.
AI For Data Compliance
AI can utilize large datasets for analysis and can process big data in a short period. Leveraging AI to analyze large amounts of data and discover patterns, trends, and connections within that data appear to be a much more efficient and effective approach to compliance.
The more data fed into AI technology, the faster it learns, assisting in detecting compliance issues and providing actionable insights to a compliance officer or team.
As automation becomes more common, AI is being used to manage sensitive data, ensuring the highest levels of customer privacy. However, the possibility of human error is eliminated because there is no human intervention.
Many businesses are turning to AI because the system can handle massive amounts of data. As a result, AI has a significant impact on the efficiency of interactions.
Use Of AI in Performance Enhancement
Companies have begun to use Artificial Intelligence for general performance evaluations and performance management.
During the pandemic, it helped organizations make accurate decisions, paving the way for a bright future.
Data collection is continuous and automated in an AI-powered performance management model.
It also reduces the chances of human biases and gives a fair review of the employee’s performance. It collects data through multiple sources and thus eliminates the chances of errors. Moreover, it makes the employee review more insightful and accurate.
As of today, AI is a blessing for businesses, helping companies to analyze their data and use those insights to make relevant decisions.
Using AI for analytics has significantly increased the profit of firms. The insights you get help the management make more accurate decisions and eliminate human error. Every firm should have AI for analysis to ensure its rapid growth.
AI has made the job of Data Analysts much easier. It saves money, effort, and time, which can be directed to more important things, thus enhancing your business’s productivity and efficiency.
Why Choose CCom Digital?
Employing the power of AI for analytics and performance management can improve your business operations in a big way. It will simplify how you perform your everyday tasks, help you overcome challenges, and make better decisions. To leverage AI and get its benefits fully, it would be wise to partner with an experienced digital agency like CCom, which has seasoned professionals with in-depth experience in its team to guide you. Connect immediately with CCom to unleash the power of AI for your business.