What is predictive analytics?
Predictive analytics techniques include machine learning, data mining and predictive statistical modeling to predict the likelihood of things to come by looking at historical data. This helps companies make accurate predictions about purchases or customer responses, as well as optimal cross-sell/upsell promotional opportunities. More specifically, predictive models help businesses attract, retain and grow their most profitable customers, improving operations. They also help companies predict future customer requirements, business needs, staffing requirements and process improvements they should make to their operations.
What are the business benefits of predictive analytics?
Predictive analytics can help improve efficiency in production and operations, reduce risk and fraud, and create better customer experiences by mapping your customers’ likely journey and expected touchpoints. It can also take the guesswork out of forecasting and supply chain management, as well as help organizations create marketing plans with more precision, knowledge and confidence.