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.