What is Predictive Analytics?
Predictive Analytics provides tools to estimate unknown or uncertain business data, or data demanding a manual or expensive process to be obtained. Beyond the strictly pure analysis of historical information performed by descriptive analytics, data predictions performed by predictive analytics support business decisions and allow, among others:
Anticipating the demand from customers
Anticipating the demand from customers at different sales points, considering factors under control such as the price for sale, and external factors, such as calendars or weather conditions.
Determining fraud probability
Determining whether a banking transaction is likely to be part of a fraudulent practice.
Finding related groups
Finding related groups among customers within a CRM who share demographic characteristics or preferences for certain services or products.
How does it work?
In order to estimate unknown information, Predictive Analytics uses a series of techniques, among which classification, prediction and segmentation are found:
Predictive Analytics uses classification, prediction and segmentation techniques.