Technological evolutions have impacted many aspects of human life. The aspects include manufacturing and business procedures. Technology that has impacted many things and has gained popularity is machine learning.
Machine learning is a scientific field that focuses on enabling computing devices to reason and think. In summary, technology enables computers to mimic human intelligence. Machine learning has been embraced in various places. It is popular in medical fields, engineering, etc.
Many businesses have also embraced machine learning technologies. Corporations that have used machine learning have reaped many benefits from it. The benefits include:
- Process optimization for time-saving,
- Derivation of business analytics quickly
- Business predictions, etc.
The benefits of embracing machine learning in business show its importance in business for growth. In this article, we highlight some ways in which ML will impact business growth.
1. Business Analytics
In the current technological era, data and information are valuable resources for businesses. With more information systems in business, brands often end up with large amounts of data.
Managing and using big data is a problem for business personnel. This is because it is hard to analyze and extract analytics from it. Machine learning technologies have mathematical and statistical algorithms. The algorithms allow a business to derive analytics information from big data.
Depending on the analytics information required from data, several ML algorithms can be used. Business personnel not looking to get technical can simply look up the required models on the model catalog. Model management service providers help businesses streamline their MLOps solutions. They do this by allowing one to host and choose the required ML model for easy deployment depending on the problem at hand.
Analytics problems that can be simplified using machine learning include grouping clients based on their attributes. This is done through the use of clustering algorithms in machine learning.
Machine learning can also help extract analytics information about the progress of the business. The algorithms will assess business data such as revenues and sales. After analyzing, they summarize all the information. This helps stakeholders know how the business is progressing.
2. Customer Relations
How a business relates with its clients is vital. This is because it directly impacts customer experience and satisfaction. Due to this, businesses dedicate a lot of resources to it. They do this to ensure their client satisfaction rates stay high.
Machine learning can help businesses improve their customer relations. It helps brands at a fraction of the cost that they would spend to achieve similar efficiency using conventional means. The main application area for machine learning is customer support.
Customer support functions depend on the products or services a brand deals with. Machine learning improves customer support through chatbots integrated into the business website.
A chatbot is an automated platform that can offer help to clients via text or calls. Chatbots make use of Natural language processing libraries. The libraries help them engage in conversations with clients using their native languages. Natural language processing helps the chatbot understand the human language used by the client. It also converts the output of the model to the client’s native language.
In business, machine learning chatbots can be used to help solve common client problems. Because they are based on computing devices, chatbots are available 24/7. The 24/7 support offered by brands to their clients helps increase their customer satisfaction. This also improves business growth.
3. Revenue & Market Forecasting
The most popular function of machine learning is making predictions based on historical data. In the past, business decisions were based on the intuition of the owner or stakeholders. In many cases, the decisions ended up with poor results.
Predictive algorithms in machine learning have helped businesses make strategic decisions. The decisions are based on facts rather than intuition. For decision-making, the machine learning model makes predictions and simulations of the various impacts of decisions. This gives stakeholders a rough outlook of the probable outcome of their decisions.
Machine learning can also help a business forecast market conditions. With the forecasts, business stakeholders will make decisions based on them. This ensures they reap benefits and increase revenues.
Market forecasting also helps businesses avoid losses. This happens in case the market predictions show a decline in profits. Artificial intelligence is also used by businesses for forecasting. AI is often used interchangeably with machine learning but it is paramount that one can differentiate artificial intelligence from machine learning.
Machine learning can also help businesses make predictions of their annual revenues. The predictions are based on trends from past revenue data. Businesses can opt to increase prices or service charges if the predictions made do not meet business targets.
4. Personalized Marketing
The use of generic marketing strategies for every client or lead in a business has been found to have poor conversion rates. This is because business clients or leads have different personalities and attributes. With this in mind, it is paramount that a brand approaches clients differently. Brands should approach clients depending on their personalities. This increase the success rates.
Machine learning helps businesses group their clients. Grouping is based on attributes such as age and previous purchases. The data used to group clients are from the brand’s CRM. Once the clients are grouped, the business can test various marketing strategies on the different groups.
The marketing strategies can be tested using methodologies, such as A/B testing. After testing, the marketing strategy with the highest success rate for each group is implemented for all clients in the group.
Personalized marketing using machine learning also goes beyond the grouping of clients. Machine learning algorithms can also send product recommendations to clients automatically. The machine learning model uses previous orders and search data of the client to know which products would spark the client’s interest. With this feature, businesses can easily get clients to buy specific products, therefore, increasing their revenues.
The use of machine learning in business functions will significantly help improve the business’ growth. When aiming to use machine learning, it is vital to stay in the know about new implementations of machine learning that crop up every day. It is therefore important to keep up with the new machine learning implementations in business to reap the maximum benefits of machine learning in business.
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