What future sales potential does which customer have? Dastani Consulting has developed a predictive analytics tool to forecast the individual sales expectations of customers at product level.
Method
In customer value prediction, historical transactions are analyzed and evaluated for their future influence on customer behavior. For each forecast horizon – be it 6, 12 or 36 months – the forecast is made in parallel for all product groups. In addition, it is fully automated in order to significantly increase the forecast quality. The procedure is based on artificial intelligence and enables forecasts about future sales, cross- and up-selling potentials.
Target/actual comparison
A target/actual comparison can be used to see whether the potential has been fully exploited. For example, the determined value of a customer value prediction for a product group of a customer is 35,000 € – but the actual revenue is only 2,500 €. This means that actual sales are well below the forecast. A resulting delta of €32,500 is visible, i.e. the potential of the sample company has not been fully exploited. According to customer value prediction, the company can use this product group to generate additional sales for this customer in this amount. By summing up the individual expected values, it is even possible to view the sales expectation for the coming fiscal year.
Exploiting potential
Customer value prediction shows which product groups and which customers are underperforming. The difference between target and actual sales provides Sales with concrete information on which customers and which product groups still offer potential and have not yet been exhausted. From this, a precise control of sales is derived.
For your company, this means: With the help of predictive analytics, you can recognize which opportunities you have in marketing and sales. Dastani Consulting forecasts are 96% accurate. Focus on promising business relationships and get excited about our attractive predictive analytics applications.
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