How Can Entrepreneurs Leverage the Benefits of Machine Learning in Business?
Reading Time: 5 minutes “The science to get your computer work in place of humans.” – Machine Learning definition by Stanford University.
In the 20th century, who might have thought of a programming language that will reduce human intervention and in turn increase the efficiency of work. No one would have ever thought of machines answering your questions in seconds.
In the 21st century, with the advancement of technologies and the introduction of the digital era, multiple Machine Learning tools have shown its sustenance in business. The compound annual growth rate is expected to reach 42.8% between 2018 to 2024. Overall, the Machine Learning market is expected to cross $30 Billion in the next four years as per one recent research.
Machine Learning algorithms and programs are utilized to achieve a relevant increase in the growth and profits of the organizations. Multi-billionaire organizations like Amazon, Flipkart, etc. have increasingly started using the benefits of Machine Learning in business.
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Machine Learning helps in analyzing the existing data and draws meaningful insights that can help an organization reach its goals. Using these insights, the organization can make the decisions to grow its business and increase profits.
To help you understand how is Machine Learning in business is successful, we have listed some of the benefits that multiple organizations are leveraging in the present era.
Benefits of Machine Learning in business
a) Analyzing the frauds happening online
With the advent of digital technologies, more and more businesses are shifting their focus online. As a result, there is a considerable increase in online transactions.
This has increased online frauds and cybercrimes. Companies dealing online have already implanted their algorithms in a way to detect any cybercrime happening at a smaller or bigger level.
The technology that they have been using to detect frauds and cybercrimes is none other than Machine Learning. One of the major and practical advantages of Machine Learning in business is to detect frauds.
Presently as per one research, only 13% of the companies and business consulting firms are using the benefits of Machine Learning. But in the next one or two years, it is expected to climb up to 37%, i.e., almost 200% of growth in the next year or two.
b) Alexa will order a cup of coffee for you from McCafe
You all are aware of virtual assistants, and some of us have started using them as well. Alexa, Siri, and Google Now are some of the examples of virtual assistants. Even Amazon developed its virtual assistant named the ‘Echo’.
Machine Learning plays an essential role in the answers and feedback you receive from your virtual assistants. This intelligent device uses Machine Learning algorithms to analyze the previous set of user behavior and data. Based on which, Virtual Assistants work as expected.
The virtual assistant is considered as one of the most important achievements in the field of Machine Learning. Time has gone when you had to call the concerned party and place your orders. Its time to say,
“Alexa, can you order a McCafe coffee for me. Let the sugar be avoided.”
c) Product recommendation on the basis of user behavior
Hiring a person who sits & analyzes all your data for months, comes up with a solution that might help or might not, and charges you for the business consulting is something that we used to see 5-10 years back.
Using Machine Learning algorithms, it has become easy for organizations to learn their customer’s behavior. For example, what are their preferences, which product have they shown interest in, where have they logged off, etc.? Using this behavioral pattern, Machine Learning draws relevant insights. It makes the product recommendation for your customers, thus increasing the user experience of your customers.
As a result, companies have seen higher profits and can draw their growth chart. Amazon sets up a great example for us of using Machine Learning to recommend the products we might be interested in buying.
d) Analyzing the sales data to generate leads
Every business needs some leads to generate new business and get a push in their existing business. In business terms, it is said that fueling is essential for a vehicle to run.
Analyzing sales data is one of the significant applications of Machine Learning in business. Using Machine Learning, customer patterns, and behaviors are analyzed. As a result, the sales team is directed to leads that can give them business.
Having these insights about the customers in hand, the sales team, with the help of their managers, can devise a marketing strategy that they can put forward and start using to generate profits. In short, Machine Learning in business helps a sales team to enhance their work efficiency, thus leading to a better business.
Companies who have leveraged the power of Machine Learning in their businesses have got remarkable results. For example, as per one research, companies who pioneered in the usage of Machine Learning in the industry have got 50% more quality leads as compared to what they used to get. And it is not just limited to generating leads; you can also leverage Machine Learning for reducing the call time with a customer, and decreasing the costs involved in generating the leads.
Summing Up
These three benefits are quite satisfying and can give you a clear idea of how Machine Learning can help in increasing business profits. If we count, the machine learning market that totaled to $1.4 billion in 2017 is expected to cross $8 billion by 2022. So you can judge how well the present growth is and how better it will hike in the coming two years.
Several companies show the growth graph, and as a result, several other organizations have adopted Machine Learning in their businesses. Companies are leveraging the benefits of Machine Learning algorithms to increase the productivity of the teams. Thus, showing a definite upward growing graph concerning the profits made annually.
Adopting Machine Learning in your business is a great option. It starts with analyzing your sales data, aligning your sales team, creating new business opportunities, adding good user experience with the product recommendation for your customers, and thus giving you significant profits.
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