Predictive Analytics points to the future and is a bit more proactive with its findings. Try to predict what is likely to happen next, with the use of available data, statistical algorithms and machine learning techniques
The predictive Analytics considers what and why surrounding critical business problems, and provides calculated predictions of what a business might expect next.
Of course, to take advantage of predictive analysis, a data scientist will have to analyze and clean historical data first.
This analysis is very complex and is possible with advanced technologies such as machine learning, data mining, and predictive modelling.
When using predictive Analytics with the correct data and algorithms, companies will not make the same mistake twice.
It transcends many industries. For example, manufacturers can predict future equipment failures through predictive maintenance.
Some Applications of Predictive Analysis:
- Risks evaluation
- Sales forecast
- Rate and prioritize potential customers
- Upselling and Cross-Selling