What is predictive analytics?
The predictive analytics is the following step to descriptive analytics because it allows us to estimate data about business that are uncertain.
In the development of these predictive analysis, statistical analysis and machine learning algorithms are used on a dataset to create a predictive model that give us the probability that a certain event happens.
To carry out this analysis is important to take a large amount of information. Moreover, the quality of this information will be a key point to get predictive model with high performance. Predictive analytics has experienced a great boom in recent years due to big data systems that allows us to use a large amount of information in an optimal way. Currently, we can find many tools that allow us to develop these algorithms such as Python, R, SAS, Spark, etc.
Predictive analytics allows the company to perform actions such as
Through predictive analytics the company will be able to have a better vision of the demand for products, and take the necessary actions to be able to supply all customers.
DETECT CUSTOMER LEAKS
This is one of the main use cases of predictive analytics. Thanks to this, the company will be able to know in good time the probability that each customer has to leave the company and will be able to carry out different retention or loyalty actions to reduce customer churn.
This is one of the algorithms with the greatest growth in recent years. Thanks to this algorithm the company will be able to offer the customer new or complementary products to increase their satisfaction.
These actions are explained in more detail in the following sections
If you want to know how predictive analytics can help your business write us and we will advise you personally.