Benefits of Machine Learning for Business
To become confident players in the market and strong competitors for mature companies, small and mid-size businesses must act out of their comfort zone. In the era of innovations, technology is the key to making this possible with minimum losses and maximum benefits.
Companies that understand the need for big data processing, data mining, artificial intelligence, and neural networks in their systems have the privilege over other players in the market. Machine & deep learning is the soul of these technologies that make them smarter and more efficient for business optimization. To understand how you can use machine learning to make your business even better, make sure to read our article with the 10 main advantages of this technology.
Why Apply Machine Learning in Business?
Companies that don’t realize the importance of machine learning are doing a slow and resource-consuming job, which brings them back to the Middle Ages. They decrease the quality and speed of production by doing a lot of manual work and making human errors. This is what machine learning won’t let you do, and to answer the question ”what can machine learning do for business?’ in full, let’s discover its main benefits in detail.
Main Advantages of Machine Learning
Based on the analytical and predictive powers of ML, we specified the 10 main advantages of machine learning for business. Since all of these advantages focus on helping companies manage their time, money, and human resources wisely as well as increase the quality of products and customer service, their features are closely tied to one another. So, here’s what you get with machine learning:
1. Improved Customer Experience Personalization
Machine learning will help you attract more people to your product or service and turn them into regular customers. You will be able to analyze customers’ browsing experience and behavior on your platform to offer them exactly what they need.
Suppose a recent search request of a user was “blue jeans”, and earlier they browsed middle-priced shoes of a specific brand. Based on this data, your platform will offer them all they were looking for. It will automatically create relevant recommendations of middle-priced blue jeans of a searched brand for this particular user.
Case in point, the recommendation engine running in Netflix helped the streaming service attract a vast audience and increase profits by effectively encouraging binge-watching. As of 2018, more than 80% of Netflix viewers watched shows following the recommendations enabled with machine learning.
On the overall, by personalizing customer experience with machine learning, you’ll get:
- bigger revenue due to higher customer engagement;
- increased customer satisfaction and, hence, higher brand loyalty;
- less time on research compared to the traditional methods of statistics;
- saved money on staff, office, and equipment.
2. Effective Work Processes Automation
Delegating manual and repetitive tasks to the machine increases the speed of production. At the same time, it helps to eliminate manual data entry errors and data duplication, ensuring the higher quality of work. Besides, you won’t need a developer to reprogram the system over again every time you want to change the workflow inside the company. By learning data continuously, your platform will be able to improve its performance and adjust work processes in the company without human assistance.
Thus, by automating business processes with machine learning, you will:
- make products and/or provide services faster;
- cut expenses on software maintenance;
- save money on staff by delegating workload to machines;
- save time on finding human resources to do the job;
- make high-quality products by removing human error;
- reduce administrative tasks and paperwork, etc.
3. Powerful Predictive Ability
While some companies use the predictive powers of ML and know what they can do to improve products or services in advance, their competitors that use traditional statistical methods stay at the research stage. There are two ways you can benefit from the ML predictions:
- Customer choice predictions. Based on customer data, the machine learning system recognizes typical and atypical behavior patterns. With this information, you can predict the changing demands for your products, features, or services and build the most effective marketing strategies to grow sales. Moreover, by knowing people’s preferences, you will understand the exact amount of time and material resources to use in production.
- Market change forecast. Large enterprises can get their systems programmed to process enormous market data and provide forecasts on upcoming innovations or changes. Consequently, you will be able to use trends faster than your competitors and predict business risks considering important market events.
As a result, the ML predictions will let you:
- know trends before your competitors;
- save time and money resources for production and promotion;
- build long-term relationships with customers;
- increase customer engagement and satisfaction;
- push powerful sales strategies to make bigger profits;
- understand how to keep your business on the run within global changes.
4. Reasonable Resource Planning
Based on the predictions obtained via machine learning, a company can estimate the resources required to meet changing demands for its products or services. Knowing in advance what your customers expect from your company in the near future will help you in inventory and process management.
Using machine learning for resource planning will allow you to:
- save money on supplies by knowing the right amount of product to keep on hand;
- set work responsibilities wisely by understanding the exact amount of work to do;
- have enough products, even during high sales growth period;
- decrease the risk of waste materials.
5. Easy Changes within Company
The scope of ML benefits isn’t limited to customer acquisition and marketing campaigns. You can set and manage workflow, follow staff progress, and maintain corporate values inside your company more efficiently. Any time you want to change something within your workspace, the system will be able to adopt all the changes quickly and reorganize the existent business processes.
Thus, with a machine learning solution, your company will get:
- faster adaptation to changing work processes;
- wiser task prioritization and division between workers;
- higher transparency of work processes among employees;
- better productivity due to measuring staff behavior in the workplace;
- easier integration of new technologies into the existing system.
6. Fast Adaptation to Market Changes
Large enterprises like Google, Apple, or Amazon are game-changers in the global market, so many companies follow their activity to understand how they can improve their business. The ML predictions give you a competitive advantage over other companies by letting you know beforehand how large companies will influence the market and what products and services will be relevant according to their activity.
So, ML will help your business stay marketable by:
- providing insights into market movement and letting you know global trends in advance;
- ensuring the basis for efficient sales and marketing strategies in the future;
- helping you manage time, money, and human resources ahead of time;
- letting you adapt to changing business environment faster and easier.
7. Advanced Customer Support
The ML solutions help to improve customer relationship management because it makes chatbots and voice assistants’ implementation possible. With these technologies, your own customers take an active part in service improvement, because systems learn directly from your customers when they enter text or say something to chatbots or voice assistants.
The benefits of customer support enabled with ML are:
- 24/7 available customer service from all corners of the world;
- saved time on introducing products to customers by automated FAQ answering;
- reduced cost of human labor because the initial communication is delegated to bots;
- improved customer engagement, since people tend to prefer chats over live conversations.
8. Increased Data Security
The security of the company and its customers has always been essential for successful business development. For instance, PayPal uses ML to ensure payment security. By noticing changes in data on financial transactions, such as sender and recipient information, credit card activity, date and time of the transaction, amount of payment, etc. the PayPal system is able to detect financial fraud.
Machine learning is used for face recognition to ensure a higher level of security. You can see this feature on Facebook when you are tagging someone in the picture or asked to authorize by the system in case it noticed suspicious activity on your profile. In medicine, ML helps hospitals keep patient’s health information confidential and available for attending physicians only.
Thus, by increasing the security of your data with ML, you get:
- eliminated fraudulent actions related to financial and personal data usage;
- increased customer trust by keeping their information confidential;
- reduced information leaks within the company.
9. More Productive Staff Training
Machine learning improves staff productivity and the quality of staff in companies. It eases the onboarding of new employees and helps your permanent employees enhance their professional skills. For example, if your company provides consulting services, you can set an AI/ML system to simulate real conversations with clients. During the probation period at work, these systems can educate your workers and help them become more confident and competent in customer service.
Consequently, the advantages you can use at this point are:
- faster staff onboarding;
- improved competence of employees;
- saved time and money compared to human mentorship programs;
- higher quality of customer service, hence, increased customer satisfaction;
- better productivity of regular employees since they are more focused on work rather than mentoring newcomers.
10. Efficient Data Management
Growing volumes of data that companies collect and use each day become difficult to manage. Machine learning helps to separate relevant data from peripheral information and spam. This is how Google Gmail works. Google uses the TensorFlow ML library that, as of 2019, helped to eliminate 100 million spam messages per day, so people don’t have their inbox clogged up.
So, in terms of data management, machine learning will help you to:
- save time by dividing important and peripheral work data for your employees;
- make your staff more productive since employees concentrate on higher priority tasks;
- drive higher user engagement by offering customers only relevant information, etc.
Machine learning offers numerous advantages to small and mid-size companies as well as large enterprises by providing them with:
- an efficient solution for business process automation;
- a technology that saves a considerable amount of time, money and human resources;
- a helpful tool providing with customer preference insights and market forecasts;
- a marketing instrument for customer experience personalization;
- a reliable tool for monitoring transactions and detecting fraud in the Fintech industry;
- a utility that helps with patient diagnostics in healthcare, and more.
Various industries appreciate this technology for predictive powers, resource-saving capabilities, and efficient customer management that allow companies to avoid as many mistakes as possible in their business. If you want to use the ML powers in your system to become a confident market player, contact us to make it possible.