Machine learning is changing the way marketers do business. In a time when consumer demands change faster than ever, there’s finally a technology that can keep up.
Speed and Accuracy
In demand forecasting, business try to stay on top of their consumer’s wants and wishes. If they know what their customer wants, they can make sure their product aligns with those wants and is available where the customer is shopping. However, trends are changing rapidly with the growth of social media influence and online marketplaces. When companies continue to use manual computer programs to make demand forecasts, they risk falling way behind consumer trends and losing business. The great thing about programs that use machine learning tools is that they cut the time it takes to predict future demand to a tiny fraction of what it was. What may take an employee with a standard computer program two weeks to accomplish, a machine learning program can finish in three minutes with greater accuracy.
How Does it Work?
For a typical computer prediction program to work well, it has to have been given intricate, coded instructions to follow in order to produce the right results. A program using machine learning tools, on the other hand, can be given a sample situation (or several) and then produce predictions as to how similar situations will occur in the future. Whereas a standard program will follow its instructions to the letter every time, a machine learning program can adapt its predictions to changing scenarios and thus ‘learn’ as time goes on. As the program learns, its predictions will become more and more accurate, very quickly surpassing the work that any other program can do.
Machine learning is a game-changer for demand forecasting and predictive analytics. As more people discover their benefits, machine learning tools will alter the face of modern marketing and analytics.