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Predictive analytics is actually an advanced business intelligence technology which plays a great role in producing a predictive score for each customer or any other organizational element. The individual predictive score is assigned by a predictive model that has been given proper training over the data, learning from the experience of a particular organization. These days, predictive analytics is even involved in optimizing the marketing campaigns and website behavior of different companies in order to increase the customer responses, conversions and clicks.
Predictive Score
People often get confused about the actual importance of predictive analytics and predictive score in different platforms. Answer to this is, an individual’s predictive score informs him about the various actions to be taken in the near future; moreover business intelligence just doesn’t get more actionable than that. The central element of predictive analytics in any business is the predictor, which is actually a variable that can be measured for an organization or other entity to predict the future behavior. No wonder, nothing is more important than future behavior for growth and expansion of any organization.
Future Business Behavior
Many organizations even apply predictive analytics in order to determine the probable future outcome of any initiative to be taken or the likelihood of a situation occurring. In technical terms, it is the branch of data mining which is concerned with the prediction of future probabilities and trends that may affect an organization in one or more ways. Advancements in analytics now even allow organizations to automatically analyze the larger amounts of data with different variables. This at times may include clustering, decision trees, market basket analysis, regression modeling, and much more.
Business Intelligence
People often doubt whether predictive analytics will work on traditional business intelligence solutions and will be able to address such needs. In reality, both business intelligence and predictive analytics have seen tremendous growth in the past few years. Traditional business intelligence often fails in analyzing the existing data, and other highly analytical models. The more advanced solutions can build strategy maps and further understand the performance against targets at all levels of a particular organization. To meet the business intelligence needs, it is best to look up performance management vendors and understand what best they can do.
Various Applications of Predictive Analytics
* Analytical customer relationship management (CRM)
* Customer retention
* Portfolio, product or economy level prediction
* Clinical decision support systems
* Underwriting
* Cross-sell
* Direct marketing
* Collection analytics
* Fraud detection
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