Predictive analytics

Predictive analytics definition

Predictive analytics is the process of using statistical algorithms and machine learning techniques to identify the likelihood of future outcomes based on historical data.

Predictive analytics usage

• By analyzing existing customer data and identifying accounts that have the potential to generate the most revenue, businesses can prioritize between customers and advocate their efforts to the most important customers. 
• By analyzing historical sales data, they can make sales forecasts. This allows them to better understand future demand and plan accordingly.
• By analyzing customer order data, companies can identify customers who are at risk of churning, in order to improve customer retention.