--- title: Do Predictive Analytics Lead to Better Consumer Understanding? description: Understanding consumer behaviour, opinions, and rational can be very useful for informing decision-making processes within organisations. Is predictive analytics the way forward for insight professionals seeking to understand more? image: https://blog.flexmr.net/hubfs/Predictive%20Analystics%20and%20Consumer%20Understanding%20Image.png --- close ## Ready to level up your insights? Get ready to streamline, scale and supercharge your research. Fill out this form to request a demo of the InsightHub platform and discover the difference insights empowerment can make. A member of our team will reach out within two working days. close ## Cost effective insights that scale Quality insight doesn't need to cost the earth. Our flexible approach helps you make the most of research budgets and build an agile solution that works for you. Fill out this form to request a call back from our team to explore our pricing options. [![FlexMR logo](https://www.flexmr.net/skin/images/images-custom/2b221b67-b091-4584-9017-872ee2ddf960-logo.svg)](https://www.flexmr.net/) Book a Demo Request Pricing [Contact Us](https://www.flexmr.net/contact/) Menu - [Home](https://www.flexmr.net/) - [InsightHub](https://www.flexmr.net/insighthub/) - [What is InsightHub?](https://www.flexmr.net/insighthub/) - [Data Collection](https://www.flexmr.net/insighthub/data-collection/) - [Data Analysis](https://www.flexmr.net/insighthub/data-analysis/) - [Data Activation](https://www.flexmr.net/insighthub/data-activation/) - [Research Templates](https://blog.flexmr.net/topic/survey-templates/) - [Information Security](https://www.flexmr.net/insighthub/information-security/) - [Services](https://www.flexmr.net/services/) - [Our Expert Services](https://www.flexmr.net/services/) - [Support & Education](https://www.flexmr.net/services/support-and-education/) - [Consultative Services](https://www.flexmr.net/services/consultative-services/) - [Insight Delivery](https://www.flexmr.net/services/insight-delivery-services/) - [Research Methods](https://www.flexmr.net/methods/) - [Sectors We Work With](https://www.flexmr.net/sectors/) - [About](https://www.flexmr.net/about/) - [About Us](https://www.flexmr.net/about/) - [Leadership](https://www.flexmr.net/about/leadership/) - [Meet the team](https://www.flexmr.net/about/meet-the-team/) - [Advisory Board](https://www.flexmr.net/about/advisory-board/) - [Press & Media](https://resources.flexmr.net/tag/press) - [Accolades](https://www.flexmr.net/about/accolades/) - [Careers](https://www.flexmr.net/about/careers/) - [Blog](https://blog.flexmr.net/) - [Resources](https://resources.flexmr.net) - [Contact](https://www.flexmr.net/contact/) - [Book a Demo](https://blog.flexmr.net/) - [Request Pricing](https://blog.flexmr.net/) - [Home](https://www.flexmr.net/) - [InsightHub](https://www.flexmr.net/insighthub/) - - [What is InsightHub?](https://www.flexmr.net/insighthub/) - [Data Collection](https://www.flexmr.net/insighthub/data-collection/) - [Data Analysis](https://www.flexmr.net/insighthub/data-analysis/) - [Data Activation](https://www.flexmr.net/insighthub/data-activation/) - [Research Templates](https://blog.flexmr.net/topic/survey-templates/) - [Information Security](https://www.flexmr.net/insighthub/information-security/) - ![Camp InsightHub](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/camp_insighthub_nav.png) Embark on a new adventure. Join Camp InsightHub, our free demo platform, to discover the future of research. [Sign Up Today](https://insighthub.flexmr.net/users/new) - ![FlexMR InsightHub](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/insighthub_screenshot.png) Read a brief overview of the agile research platform enabling brands to inform decisions at speed in this PDF. [Download Brochure](https://blog.flexmr.net/hubfs/Public_Files/InsightHub_Brochure.pdf) - ### InsightHub on the Blog - [Surveys, Video and the Changing Face of Agile Research](https://blog.flexmr.net/surveys-video-changing-agile-research) - [Building a Research Technology Stack for Better Insights](https://blog.flexmr.net/research-technology-stack) - [The Importance of Delegation in Managing Insight Activities](https://blog.flexmr.net/delegation-importance-insight-activities) - [Common Insight Platform Pitfalls (and How to Avoid Them)](https://blog.flexmr.net/platform-pitfalls-how-to-avoid-them) - [Services](https://www.flexmr.net/services/) - - [Our Expert Services](https://www.flexmr.net/services/) - [Support and Education](https://www.flexmr.net/services/support-and-education/) - [Consultative Services](https://www.flexmr.net/services/consultative-services/) - [Insight Delivery Services](https://www.flexmr.net/services/insight-delivery-services/) - [Research Methods](https://www.flexmr.net/methods/) - [Sectors We Work With](https://www.flexmr.net/sectors/) - ![FlexMR Services Team](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/services.jpg) Our services drive operational and strategic success in challenging environments. Find out how. [Download Brochure](https://blog.flexmr.net/hubfs/Public_Files/Brochures/FlexMR_Services_Brochure.pdf) - ![Video Close Connection Programme](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/video_services.jpg) Close Connections bring stakeholders and customers together for candid, human conversations. [Read Press Release](https://resources.flexmr.net/close-connections-launch) - ### Explore our Practices - [Communities Practice](https://www.flexmr.net/insighthub/) - [Closeness Practice](https://www.flexmr.net/practices/customer-closeness/) - [CX Practice](https://www.flexmr.net/practices/customer-experience/) - [Insight Communications Practice](https://www.flexmr.net/practices/insight-communications/) - [About](https://www.flexmr.net/about/) - - [About Us](https://www.flexmr.net/about/) - [Leadership](https://www.flexmr.net/about/leadership/) - [Meet the Team](https://www.flexmr.net/about/meet-the-team/) - [Advisory Board](https://www.flexmr.net/about/advisory-board/) - [Press & Media](https://resources.flexmr.net/tag/press) - [Accolades](https://www.flexmr.net/about/accolades/) - [Careers](https://www.flexmr.net/about/careers/) - ![FlexMR Credentials Deck](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/flexmr_credentials.png) The FlexMR credentials deck provides a brief introduction to the team, our approach to research and previous work. [Download Credentials](https://blog.flexmr.net/hubfs/Public_Files/Brochures/FlexMR_Credentials.pdf) - ![FlexMR Insights Empowerment](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/insights_empowerment.png) We are the insights empowerment company. Our framework addresses the major pressures insight teams face. [Download Brochure](https://blog.flexmr.net/hubfs/Public_Files/Brochures/Insights_Empowerment_Brochure.pdf) - ### Latest News - [Insight as Art Shortlisted for AURA Innovation Award](https://resources.flexmr.net/aura-innovation-award-2021) - [FlexMR Launch Video Close Connection Programme](https://resources.flexmr.net/close-connections-launch) - [VideoMR Analysis Tool Added to InsightHub](https://resources.flexmr.net/videomr-launch) - [FlexMR Makes Shortlist for Quirks Research Supplier Award](https://resources.flexmr.net/quirksmr-mr-supplier-award-2020) - [Blog](https://blog.flexmr.net) - - [Latest Posts](https://blog.flexmr.net) - [Strategic Thinking](https://blog.flexmr.net/topic/strategic-thinking) - [Technology & Trends](https://blog.flexmr.net/topic/tech-trends) - [Research Methods](https://blog.flexmr.net/topic/research-methods) - [Practical Application](https://blog.flexmr.net/topic/practical-application) - [Insights Empowerment](https://blog.flexmr.net/topic/insights-empowerment) - [View Full Blog Archives](https://blog.flexmr.net/all) - ![FlexMR Close Connection Programme](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/close_connection.png) Discover how to build close customer connections to better support real-time decision making. [Build Connections](https://blog.flexmr.net/practical-support-real-time-decisions) - ![Market Research Playbook](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/market_research_playbook.png) What is a market research and insights playbook, plus discover why should your team consider building one. [Discover Playbooks](https://blog.flexmr.net/market-research-playbook) - ### Featured Posts - [Five Strategies for Turning Insight into Action](https://blog.flexmr.net/5-strategies-turn-insights-into-action) - [How to Design Surveys that Ask the Right Questions](https://blog.flexmr.net/effective-survey-design-guide) - [Scaling Creative Qual for Rich Customer Insight](https://blog.flexmr.net/scale-creative-qual-rich-understanding) - [How to Measure Brand Awareness: The Complete Guide](https://blog.flexmr.net/measure-brand-awareness) - [Resources](https://resources.flexmr.net) - - [All Resources](https://resources.flexmr.net) - [Client Stories](https://resources.flexmr.net/tag/case-studies) - [Whitepapers](https://resources.flexmr.net/tag/whitepapers) - [Events & Webinars](https://resources.flexmr.net/tag/events) - [The Open Ideas Panel](https://ideas.flexmr.net/auth/sign_in) - [InsightHub Help Centre](https://help.flexmr.net/en) - [FlexMR Client Network](https://www.linkedin.com/groups/9165407/) - ![Insights Empowerment Readiness Calculator](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/insights_calculator.png) The insights empowerment readiness calculator measures your progress in building an insight-led culture. [Get Your Score](https://resources.flexmr.net/insights-empowerment-calculator) - ![MRX Lab Podcast](https://blog.flexmr.net/hubfs/Website_Files/Images/Navigation/flexmr_podcast.png) The MRX Lab podcast explores new and novel ideas from the insights industry in 10 minutes or less. [Listen Now](https://resources.flexmr.net/mrx-lab-podcast) - ### Featured Stories - [Specsavers Informs Key Marketing Decisions with InsightHub](https://resources.flexmr.net/specsavers) - [The Coventry Panel Helps Maintain Award Winning CX](https://resources.flexmr.net/coventry-building-society) - [Isagenix Customer Community Steers New Product Launch](https://resources.flexmr.net/isa-insights) - [Curo Engage Residents with InsightHub Community](https://resources.flexmr.net/curo) - [Tech & Trends](https://blog.flexmr.net/topic/tech-trends) / - [Research Methods](https://blog.flexmr.net/topic/research-methods) / 9 MIN READ ## Do Predictive Analytics Lead to Better Consumer Understanding? #### Emily James # [Workshops and Beacons: A Guide to Building Custome...](https://blog.flexmr.net/workshops-beacons-customer-salience) Most organisations are not short of data, insight or decks.Their biggest challenge is not whether cu... [Read more](https://blog.flexmr.net/workshops-beacons-customer-salience) 9 MIN READ #### Ed Hill - [Events (1)](https://blog.flexmr.net/topic/events) - [Insights Empowerment (38)](https://blog.flexmr.net/topic/insights-empowerment) - [Practical Application (178)](https://blog.flexmr.net/topic/practical-application) - [Research Methods (285)](https://blog.flexmr.net/topic/research-methods) - [Strategic Thinking (232)](https://blog.flexmr.net/topic/strategic-thinking) - [Survey Templates (7)](https://blog.flexmr.net/topic/survey-templates) - [Tech & Trends (397)](https://blog.flexmr.net/topic/tech-trends) Have you ever wondered if we can accurately predict the future? Now, I’m not talking about psychic abilities, but rather taking a customer or consumer, or even a segment of them, and predicting how they will behave based on their previous actions. This is what many businesses do to help gain a better understanding of general consumers and their own customers, and use those insights to evolve business, marketing, and product/service strategies to better serve their needs. So, the short answer to the title question is: yes. We can indeed use predictive analytics to achieve a better understanding of consumers - but only when used right. Predictive analytics are used on a daily basis to spot future trends, opportunities and challenges; these insights are brilliant for future-proofing key strategies - but do they help us understand consumers better too? | ![Tweet from FlexMR](https://www.flexmr.net/images/webpage-images/45-tweet-this-from-flexmr.png) | ***Tweet This*** | | --- | --- | | [Predictive analytics are used on a daily basis to spot future trends, opportunities and challenges; these insights are brilliant for future-proofing key strategies - but do they help us understand consumers better too?](https://ctt.ac/RKQfw) | | Most organisations use predictive analytics on a daily basis to influence decision-making processes across the organisation. One tangible example of how predictive analytics helps both customers and businesses, is when energy companies apply it to predict [how much energy](https://www.tibco.com/blog/2015/06/24/forecasting-energy-use-with-predictive-analytics/) you’re going to need and when, even if you’ve just moved into a new place. ### What is Predictive Analytics? Predictive analytics is a sector of data analytics that specialises in ‘predicting’ the future based on insights from current and historical data generated from consumer interactions. A very neat concept with a lot of potential for all industries. Typically, data mining, machine learning, and statistical analysis tools are used to collate and sort this data from a variety of platforms that cover the many channels through which brands interact with customers and consumers, including but not limited to: - Trawling social media for consumer reactions, trends, and opportunities - social media is a ready-made online platform that your customers and consumers use to interact with each other 24/7 - producing more data now in this pandemic than ever before as a sole means of communication. - Trawling transcriptions of live chat customer service, or recorded data from customer service telephone lines - this is typically used to identify pain points and fix issues that occur during daily customer service interactions, but can also be used for predictive analytics purposes too. - Using the IoT to gather passive data on app usage, frequently visited places, frequently googled requests, and a lot more besides to form a better picture with contextual insights that better inform the reasons behind previous consumer behaviour, and thus share insight into how consumers behave in the future when faced with similar circumstances.  Of course there are many more channels through which this data can be obtained. Through this, we can form an innate foundational understanding of both consumers and customers. There will always be surprises, but predictive analytics, when supplied with enough data, is one of the best chances businesses have of preparing themselves for potential future situations; future-proofing their strategies so that they can come through the other side stronger and intact. ### Predictive Analytics: Tactics, Tools, and Techniques Using predictive analytics to build up a better understanding of consumers is one of the best ways to future-proof strategies - but only if it’s used to inform rather than fully steer them.  In [one of my previous blogs](https://blog.flexmr.net/new-yorkers-love-new-york-why-it-matters), I stressed the importance of understanding consumers outside of the ‘consumer’ context; those types of contextual insights are absolutely key in understanding consumer behaviour, as it points us to a reason why individual and collective consumers act the way they do, their biggest influences, and their most common reactions to both situations and circumstances. But there is a lot of contextual data that can be gathered about an individual consumer, so how are we meant to understand them all? Because of the massive amount of data we produce on a daily basis, it becomes impossible for a research team to trawl through absolutely everything - this is where machine learning and automation comes into the picture. When programmed right, automated algorithms can easily pattern-spot and sort data into key themes ready for a researcher’s expertise; they can then use the statistical analysis tools of their choice that use data visualisation and modelling techniques to analyse the data and draw out key insights that help inform the decisions made across the organisation on a variety of different topics from product and service development, to the refinement of both business-wide and department-specific SMART objectives. There area few different predictive analytics models that help with decision-making processes across organisations,, but these are the ones are the most applicable to enhancing consumer understanding: - The [Customer Segmentation Model](https://www.cio.com/article/3273114/what-is-predictive-analytics-transforming-data-into-future-insights.html) helps researchers group consumers into segments based on whatever they desire, but the most effective for the organisation would be on purchasing behaviours or how they interact with brands.  - The [Random Forest Algorithm](https://www.logianalytics.com/predictive-analytics/predictive-algorithms-and-models/), which is best used with large datasets. This is a model that aims to predict consumer behaviour based on historical data, and present the variety of possible outcomes in the form of a flowchart. It takes into account a considerable number of variables and anomalies that reduces the chance of bias, provides estimates for any missing data, and increases the chance of predictive success as long as the datasets are large and informative enough. - [Artificial Neural Network Models](https://www.sas.com/en_gb/insights/analytics/neural-networks.html) are an application of deep learning process that analyses a large variety of datasets for many purposes, such as natural language processing. They learn and model the relationships between nonlinear and complex inputs and outputs to reveal hidden patterns, relationships, and predictions to improve decisions. Containing the large data sets generated from these and other models in a large data bank accessible to all departments in an organisation will ensure that the data and insights are used to the best of their ability in all decision-making processes, thus ensuring the best chance of business-wide understanding and insight activation. ### Integrating Predictive Analytics for the Best Chance of True Consumer Understanding These insights enabling consumer understanding can be [used to full effect](https://www.predictiveanalyticstoday.com/what-is-predictive-analytics/) in all departments, from [Marketing](https://towardsdatascience.com/predictive-analytics-predicting-consumer-behavior-with-data-analytics-8ca51abb8dc2) and Customer Service to Product Development and Operational Support, in organisations [across all industries](https://www.sas.com/en_gb/insights/analytics/predictive-analytics.html). So going back to the title question at hand, yes predictive analytics does lead to better consumer understanding when applied in the right way. | ![Tweet from FlexMR](https://www.flexmr.net/images/webpage-images/45-tweet-this-from-flexmr.png) | ***Tweet This*** | | --- | --- | | [The best way to use predictive analytics to understand consumers better is to integrate it into a wider research strategy, allowing data to be continually collated and analysed from multiple channels for better accuracy.](https://ctt.ac/L_9nm) | | But as with any other tool and technique, predictive analytics can only take us so far in our quest to understand consumers. With predictive analytics focussing a lot on taking historical data to predict future behaviour, we forget that it’s only an estimate of what might happen rather than anything we can rely on with any great certainty on its own. It’s a good approximate roadmap for us to follow, but the landscape might change and evolve depending on the data that we get further down the line. So the best way to make sure your understanding is as up to date and accurate as it can be using predictive analytics, the gathering and analysis of data must be continuous, and the predictions that we draw from it must be continuously re-informed, reinforced, and influenced by the streams of data and insights that we get from the data collection techniques outlined above.  To go one step further, integrating predictive analytics with other market research and [behavioural science techniques](https://blog.flexmr.net/researchers-need-to-know-behavioural-science) to create a multi-pronged approach to data collection and analysis will allow any and all insights you generate to continuously inform each other, painting a bigger and more precise picture, and leading to a better chance of true consumer understanding. [![New call-to-action](https://no-cache.hubspot.com/cta/default/1682149/a07b9b9f-fee9-447c-a050-1e3fa9d77f53.png)](https://cta-redirect.hubspot.com/cta/redirect/1682149/a07b9b9f-fee9-447c-a050-1e3fa9d77f53) #### About FlexMR We are The Insights Empowerment Company. We help research, product and marketing teams drive informed decisions with efficient, scalable & impactful insight. #### About Emily James As a professional copywriter, Emily brings our global vision to life through a broad range of industry-leading content. #### Stay up to date ## You might also like... ![Blog Featured Image Header](https://blog.flexmr.net/hubfs/Marketing_Files/Blogs/Headers/retaining_human_touch_customer_salience_cx_ai.png) ### [Retaining a Human Touch with Custom...](https://blog.flexmr.net/customer-salience-cx-ai) In recent years, companies have embraced artificial intelligence (AI) at pace, swept up in a technological momentum that promises efficiency and cost savings. However, in their rush to pursue quickly ... [Continue reading](https://blog.flexmr.net/customer-salience-cx-ai) 5 MIN READ ![Blog Featured Image Header](https://blog.flexmr.net/hubfs/Marketing_Files/Blogs/Headers/casual_conversation_iosetta_santini.png) ### [A Casual Conversation... with Ioset...](https://blog.flexmr.net/casual-conversation-iosetta-santini) Most research projects still currently end with a powerpoint report and a debrief. This has become deeply entrenched as the industry standard, and it is what stakeholders have come to expect when they... [Continue reading](https://blog.flexmr.net/casual-conversation-iosetta-santini) 4 MIN READ ![Blog Featured Image Header](https://blog.flexmr.net/hubfs/Marketing_Files/Blogs/Headers/synthetic_data_richer_market_insights.png) ### [Synthetic Data: The Key to Richer M...](https://blog.flexmr.net/synthetic-data-richer-market-insights) In the dynamic world of market research, the need for robust and accurate data is critical. Whilst the increased prevalence of generative AI has provided a range of benefits to market research process... [Continue reading](https://blog.flexmr.net/synthetic-data-richer-market-insights) 7 MIN READ ![](https://www.flexmr.net/skin/images/images-custom/48f118ee-cef9-42d6-b60b-5575d5ac26e3-flexmr_footer.svg) - [Home](https://www.flexmr.net/) - [Contact Us](https://www.flexmr.net/contact/) - [Privacy Policy](https://www.flexmr.net/legal/privacy/) - [Cookie Policy](https://www.flexmr.net/legal/cookies/) - [Terms of Use](https://www.flexmr.net/legal/terms-of-use/) [Follow us on Facebook](https://www.facebook.com/flexmr/) [Follow us on Twitter](https://twitter.com/_flexmr) [Follow us on LinkedIn](https://www.linkedin.com/company/flexmr) [Follow us on YouTube](https://www.youtube.com/c/FlexmrNetOnlineResearch) [![Grit Top 50 Logo](https://www.flexmr.net/uploads/photo-gallery-include-images/34/44258f4d-7452-40d6-bb23-0e220c8ba21f.png)](https://www.greenbook.org/mr/grit/business-innovation-edition) [![ISO 27001 Alcumus](https://www.flexmr.net/uploads/photo-gallery-include-images/34/fa89f9b3-d866-43b8-8de0-4a052a9053d8.png)](https://www.alcumus.com/en-gb/certification/iso-27001/) [![Cyber Essentials Plus Logo](https://www.flexmr.net/uploads/photo-gallery-include-images/34/cba57df6-75a2-4544-9599-dcc0c2f14b79.png)](https://blog.flexmr.net/hubfs/Public_Files/Other/FlexMR_Cyber_Essentials_Certificate.pdf?__hstc=163229475.dde2c3d212762f49b059c9f62e7537a0.1624542718433.1626339489304.1626701624468.7&__hssc=163229475.2.1626701624468&__hsfp=3142549060) © FlexMR 2021. All rights reserved. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Emily James", "url" : "https://blog.flexmr.net/author/emily-james" }, "dateModified" : "2022-04-06T15:01:31.679Z", "datePublished" : "2020-08-03T08:12:26.000Z", "headline" : "Do Predictive Analytics Lead to Better Consumer Understanding?", "image" : [ "https://blog.flexmr.net/hubfs/Predictive%20Analystics%20and%20Consumer%20Understanding%20Image.png" ], "mainEntityOfPage" : { "@id" : "https://blog.flexmr.net/predictive-analytics-consumer-understanding", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.flexmr.net/hubfs/Website_Files/Images/Logos/flexmr_logo_amp.png" }, "name" : "FlexMR" } } ```