🐟🍦 If we just increase the number of shark attacks, we’ll sell more ice cream! Sounds ridiculous, right? Yet, many businesses unknowingly fall into similar data traps when working with predictive analytics. While the two graphs might correlate - one is not causing the other. Could the sun be at play as the common determining factor?
The shark anecdote is one many great anecdotes Ola Lindeberg shared in the latest episode of the Hello $Firstname podcast. Ola, an indeed very senior data scientist with experience from Telia Sweden, Ivbar, and Swedish Armed Forces, joined me to discuss the flawed assumptions businesses make when using predictive analytics—and why prescriptive analytics would often be better if you want to drive real behavioral change in personalization. (OMG also just remembered the anecdote with the genAI powered spoof caller trap!!! It’s towards the end of the episode!)
🔗 How This Ties Into the CX LayersAt the core of our conversation was the Data Layer in the CX Layers framework. While most personalization setups heavily rely on data-driven insights, many fall into the trap of using predictive analytics without considering how to act on those insights. In other words, they’re forecasting the weather instead of deciding what to do about it.
Ola’s perspective perfectly illustrates why the Data Layer isn’t just about insights—it’s about decisioning and action. And that’s where prescriptive analytics comes in: Instead of just predicting what a customer might do, it helps businesses determine what action should be taken to actually influence customer behavior.
🔍 Key Insights from the Episode:📊 Predictive vs. Prescriptive Analytics: Why Knowing Isn’t Enough
🌦️ Why Wearing a Jacket Won’t Change the Weather (And Why Your Marketing Might Be Doing Just That)
⚡ The Booking.com Experiment: Why One Day in Paris Sells More Trips
🤖 The Role of Generative AI in Decisioning
🚀 Final Takeaway: Stop Predicting—Start Influencing If you’re only using predictive analytics, you might just be f
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