Big data has become an integral part of running a successful business. More businesses have started incorporating technologies like the application of Machine Learning. This allows them to gain insights from raw data to understand patterns and behaviors.
Machine Learning itself has gotten more advanced over the years. Organizations from many industries are currently utilizing these applications to improve their business. Let’s take for example the healthcare industry. They use machine learning applications to get more accurate diagnoses on patients.
The advantage of machine learning is that it can be used by any organization. From logistics to travel or energy production, the applications of machine learning have a role to play in the years to come.
What are machine learning applications?
Machine learning is derived from Artificial Intelligence (AI). It uses automated algorithms to glean meaningful data from big data. What makes it different from regular analytical software is that it is adaptable. These algorithms are constantly evolving to match the data and trends it is deciphering.
10 machine learning uses
- Churn modeling
Churn modeling, also known as churn prediction, is the process of identifying which customers are likely to stop interacting with your business. It uses machine learning to determine when a customer is finding issues with your business and how you can fix it. The algorithm will look into business data to identify patterns as to why they are losing customers. It can even let a business know when a customer is at risk of moving to a competitor.
- Identifying the customer lifetime value
Machine learning can be used to predict the future revenue an individual customer will bring to the business. It will help to identify the biggest spenders and the most loyal customers/ambassadors. Using this information, the business can choose to focus their marketing efforts on these customers.
- Real-time chatbots
Chatbots have allowed businesses to interact with customers without needed human intervention. This has helped streamline the communication process ensuring that customers feel like they’re heard. Initially, chatbots were only able to interact using a predetermined set of responses. However, with improvements to ML and Language processing, chatbots are able to adapt when necessary. They are more interactive and can now communicate almost similarly to a human being.
- Set up dynamic pricing
Dynamic pricing can help businesses maximize their revenues. A machine learning application can go through all the historical pricing data of the company. It will then gather further insights from the market and consumer data. The application can then determine pricing based on these variables. One example of this is the Uber ride hailing app. During surge hours, the prices are determined using different variables than normal.
- Faster decision making
Machine learning can analyze historical data and run hypotheticals faster than a human can. It is also more efficient and can run for many hours more than a human. This helps to make the decision process faster. For example, new trends in the business world can be identified early. Thus, the business can jump on that bandwagon before it becomes crowded.
- Segmenting the market
By analyzing data, these machine learning applications can predict how the market reacts. This will help the business deliver the right type of product to relevant customers at the appropriate times. For example, the business can identify which products are the most successful for each season of the year.
- Classifying images
Machine learning can be used to assign a label to an image from a fixed set of categories. They can effectively identify what is present in an image using deep learning technologies. This is especially useful for applications like photo tagging and identifying medical diagnoses.
- Detecting fraud
Machine learning can identify patterns. As such, it can also determine when there is an anomaly in these patterns. This is especially useful for financial applications such as analyzing credit card usage.
- Extracting data
Machine learning applications can analyze unstructured data to get relevant information. They are much more efficient and accurate than humans. It can be used to get quick information from legal contracts, bio-data, and more.
- Improving business efficiency
These applications can be implemented into business processes to make them more efficient. They require little human interaction and can be run even 24 hours a day. As such, they will speed up the work and reduce any human errors. One example is automating software testing.
Machine learning is one potentially successful future of business. If you haven’t incorporated it already, the start of 2022 is a good time to consider it. You can begin the process by using a machine learning development company to set it up for your business.
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