Instead of using product past performance, store-orders or gut feelings, companies are now trying to predict the future, based on what is happening now.
A weather change, a cultural event, a new box office hit or even social events can influence trends and consumption. But how will companies know in advance?
Nowadays, its getting easier. Perhaps the most accurate indicators of consumer opinion and behavior, in real time, are the posts in social media. Furthermore, segmented information from Club cards can provide data about purchasing habits while online e-commerce can help in predicting sales in stores.
According to the Mckinsey article, in the Predictive Analytics section, analysis of such data can lead businesses to bypass competitors by making the right moves, first.
