Currently, the evolve of technology is very fast. The impact is visible in the business area, it might help to find the pattern of transaction to identify opportunities and risks in the future. Business owner can compete to other companies by using the Predictive Analytics.
What is predictive analytics?
Predictive Analytics is the branch of the advances analytics which is used to make prediction about unknown future. Essentially, predictive analytics need a data to proceed. It uses many techniques from data mining, statistics, modeling, machine learning and artificial intelligence to identify the likehood of future outcomes based on historical data. Predictive analysis allows the organizations to become data-driven not on a hunch or assumptions.
Who is using Predictive Analytics?
Any industry casn use it to optimizing operations, reducing risk and increasing revenue.
Why is Predictive Analytics important?
Organizations are turning to predictive analytics to help solve difficult problems and uncover new opportunities. Common use case include:
- Improving Operations
Many company use predictive models to forecast inventory and manage resources. Airline use predictive analytics to set the best ticket prices. FMCG company can use predictive analytics to set the best sales route optimization. Predictive analytics enables organizations to function more efficiently.
- Reducing Risk
Predictive analytics predicts the best portofolio to maximize return in capital asset pricing model and probabilistic risk assessment to yield accurate forecast. Financial industry use credit scores to assess a buyer’s likelihood of default for purchases and area a well-known.
- Optimizing marketing campaign
Predictive analytics are used to determine customer responses or purchases, as well as promote cross-sell opportunities. Predictive analytics also help to identify efective combination of product version, material, communication channel and timing that should be used to target a given customer. B2C company use predictive analytics to depth understanding their customer such as generate customer segmentations or customer profiling.
- Fraud Detection
For eCommerce industry it become to fraud prevention solution for payments scam, include to identify thefts and merchant scam. Financial industry using predictive analytics to preventing loan application fraud, insurance fake claims, anti-money laundering and anomaly detection to reveal suspicious transactions and many more.
What do you need to get started using predictive analytics?
First, identify what do you want to solve. What do you want to understand and predict? Second, you’ll need data. Third, begins to build predictive model. The last is need people who understand