If you are still struggling with manual data entry, don’t have time for strategic tasks, and require accurate financial projections for your business, consider applying machine learning methods to solve these challenges. ML will enable you to stay aware of customers’ needs, keep your company safe, and automate mundane tasks.
In this article, you will learn more about the most significant ML use cases and find out why it is vital for businesses to apply machine learning.
Brief Overview of ML
Before we dive deep into ML use cases and define how it can add value to your business, let’s find out how machine learning actually works. Its main task is to process vast amounts of data and extract vital insights from this information.
Imagine that you have started an online clothing store and have a customer base, but you still don’t understand the audience’s preferences and can’t predict their future demand for your goods.
Machine learning algorithms will gather data about your consumers and process their behavior and shopping history to find patterns. As a result, you can offer users personalized recommendations and predict future demand to optimize logistics. Constantly evolving ML algorithms identify valuable information from raw data sets. The more information algorithms consume, the more precise predictions they will make.
Integrating machine learning into your business processes will enable you to respond to changing market conditions before your rivals, boost customer experience, and optimize operations.
Machine Learning for Business: Use Cases
From spam detection by renowned email clients to face recognition by Facebook, we benefit from machine learning daily. What’s more, the ML market is expected to reach $90.1 billion by 2026, compared to $17.1 billion in 2021.
Let’s take a look at the most significant ML use cases you can apply to strengthen your business:
Customer Lifetime Value Prediction
Customer lifetime value is the total income you can expect from a typical consumer from the first to the last purchase. It’s a crucial metric to optimize marketing campaigns and set your budget efficiently. CLV helps you define the amount of funds you can invest in new customer acquisition and existing customer retention strategies.
Machine learning prediction models analyze historical data for patterns to help you figure out how customers cooperated with your company and how they will do it in the future. This data will also enable you to find out your consumers’ spending habits and an income you generate from a typical client.
Behavior Analysis for a Better Experience
Behavior analysis is one of the most common ML use cases, especially in the retail industry. This sector deals with vast amounts of data, so machine learning algorithms can process it to detect consumers’ purchase patterns and shopping history.
Customer behavior analysis will enable you to find data-powered answers to the following questions:
- Which products or services grab your customers’ attention and why?
- How do consumers navigate your website or store?
- Why do customers choose your business over competitors?
- How do they learn about your brand?
- How do they use your goods or services?
- What issues may they face?
Thus, you will be able to anticipate the changing demands, provide consumers with offers based on their preferences, and develop powerful marketing strategies to boost sales. ML prediction models are a fantastic tool to enhance customer satisfaction and build strong relationships with your audience.
Data Entry Automation
Machine learning technology is a lifesaver for businesses that need to reduce manual processes and optimize data entry to let employees do more strategic tasks. With ML algorithms, you can extract information from imagery, websites, and documents to pick relevant data and view it in a structured manner.
Data entry automation will help you avoid errors caused by human factors, save time, and analyze large volumes of data. You won’t have to hire more data entry specialists to deal with your corporate information, so it’s a great way to reduce operational costs.
If you are looking for a way to enrich your audience with new customers and retain the existing ones, machine learning will help you. By analyzing users’ browsing experience and their interaction with your website, you can offer them the products or services they require.
For example, a user’s recent search query was “middle-priced black leather jacket”. Machine learning algorithms will capture this information to make your website offer personal recommendations and show relevant products.
As a result, enhanced customer satisfaction will lead to higher revenue, you will boost brand loyalty, and your specialists will spend less time identifying consumers’ preferences.
With 333.2 billion emails sent every day, email providers don’t always filter out spam messages properly. Usually, they analyze the email’s content. So, messages will probably be marked as spam if they include:
- mass mailing,
- grammatical and spelling mistakes,
- an anonymous sender,
- a financial information request,
- poor-quality images, etc.
However, spammers are becoming more cunning, and it’s crucial to benefit from machine learning algorithms to predict whether an email is spam.
To teach ML models to identify unwanted messages, you have to provide them with a sequence of examples of “spam” and “non-spam” emails. Then, they will have to find relevant patterns in your data and divide messages into 2 categories. It’s a great way to detect and eliminate phishing messages and junk emails.
Financial Analysis and Prediction
From predicting business expenses to fraud detection, financial institutions can benefit from machine learning technology to forecast outcomes more precisely. Advanced algorithms need less time to capture data, conduct a data analysis process, and come up with accurate financial predictions.
After processing your current policies and goals, market research data, economic surveys, and other essential records, a predictive model will offer you informative reports about your company’s performance. It will help you make data-driven decisions, build strategic business plans, and run an effective budgeting process.
Machine learning for businesses enables companies to minimize concerns associated with privacy issues, phishing attacks, and data breaches. Using ML algorithms, you can empower your current security system and predict future cyber attacks by analyzing historical data and identifying anomalies.
You can also use ML to estimate and fix your products’ vulnerabilities before you present them to end-users. It will help you keep your products safe, deliver top-quality solutions, and stay ahead of the competition.
If you need to strengthen payment security, machine learning algorithms can make it happen. Based on the previous data, they will identify suspicious transactions and actions to notify users of fraudulent activity.
The image recognition market is expected to reach $53 billion by 2025, compared to $26.2 billion in 2020. With empowered image recognition, businesses can provide consumers with a checkout-free shopping experience. A robust combination of computer vision and deep learning controls when goods are taken from shelves and monitors these products in a virtual cart. When customers leave a store, they will get a receipt via email.
Why Is It Vital for Businesses to Apply Machine Learning?
If you are still wondering whether you need machine learning for your business, here are some reasons for you to consider:
- Enhanced customer experience and precise sales forecasts. With ML, retail companies can understand their consumers’ behavioral patterns, predict market demand accurately, and provide their audience with personalized offers tailored to their preferences.
- Accurate medical predictions. The healthcare industry can use ML to detect high-risk patients, suggest the most suitable treatments or procedures, and predict readmissions. It’s also possible to analyze current symptoms and genetic history to detect diseases in the initial stages.
- Efficient predictive maintenance. It’s vital for manufacturing companies to avoid equipment breakdowns. Machine learning technology can predict possible issues before they occur to increase the lifetime of your equipment.
- Data-driven decision-making. ML algorithms acquire valuable insights from data as rapidly as possible and transform this information into structured reports. A fast and data-powered decision-making process will enable you to build more powerful strategies and accelerate business operations.
Empower Your Business with Advanced Machine Learning Solutions
Applying machine learning will enable you to benefit from cybersecurity to stay on the safe side, conduct behavior analysis to understand your customers, and eliminate manual data entry to let specialists focus on more essential tasks. LITSLINK is always happy to build innovative ML solutions for your business and help you thrive!