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Guidance and results for the data-rich, yet information-poor.

Predictive Analytics Helps Businesses Get Better at Guessing

Predictive AnalyticsPredictive analytics – the use of data mining, machine learning and other techniques to look for patterns in data and make informed predictions – helps companies get better at guessing customer wants, needs and behaviors. In a recent Computing.co.uk article Jim Manzi of Applied Predictive Technologies explained predictive analytics helps companies get “about three percent better at guessing”. That may not seem like a large figure, and the effectiveness of predictive analytics depends on the size of the data and the scope of the project, but even 3% can certainly translate to a lot of cash in the right situation.

Predictive modeling allows companies in any industry to fine tune their sales efforts based on educated guesses what their customers will respond to best. “What we’re trying to do with predictive analytics is to get a little better at what you’re already doing,” said Manzi. “And so really our technologies could  in theory be used to build experiments and from that build models to say that a customer ID is more likely to respond to the following offer than another customer ID.”

Retail operations, banks, insurance agencies and the entertainment industry are just a few types of businesses that use data mining and predictive analytics to increase sales. For some practical examples of data mining, see this post on The Modeling Agency’s blog.

If you’re ready to learn more about how data mining and predictive analytics can work for your company, register for The Modeling Agency’s next free data mining webinar. Or for a more in-depth, hands-on examination, attend an upcoming data mining and predictive analytics training course.

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