| Predictive Analytics is the process of dealing with | | | | sales, claims, transactions etc |
| variety of data and apply various mathematical | | | | - Improved customer service and confidence |
| formulas to discover the best decision for a given | | | | - Significant reduction in Direct Marketing expenses |
| situation. Predictive analytics gives your company a | | | | Basic steps of Predictive Analytics are as follows: |
| competitive edge and can be used to improve ROI | | | | - Spot the business problem or goal |
| substantially. It is the decision science that removes | | | | - Explore various data sources such as transaction |
| guesswork out of the decision-making process and | | | | history, user demography, catalog details, etc) |
| applies proven scientific guidelines to find right solution | | | | - Extract different data patterns from the above data |
| in the shortest time possible. | | | | - Build a sample model based on data & problem |
| Predictive analytics can be helpful in answering | | | | - Classify data, find valuable factors, generate new |
| questions like: | | | | variables |
| - Who are most likely to respond to your offer? | | | | - Construct a Predictive model using sample |
| - Who are most likely to ignore? | | | | - Validate and Deploy this Model |
| - Who are most likely to discontinue your service? | | | | Standard techniques used for it are: |
| - How much a consumer will spend on your product? | | | | - Decision Tree |
| - Which transaction is a fraud? | | | | - Multi-purpose Scaling |
| - Which insurance claim is a fraudulent? | | | | - Linear Regressions |
| - What resource should I dedicate at a given time? | | | | - Logistic Regressions |
| Benefits of Data mining include: | | | | - Factor Analytics |
| - Better understanding of customer behavior propels | | | | - Genetic Algorithms |
| better decision | | | | - Cluster Analytics |
| - Profitable customers can be spotted fast and served | | | | - Product Association |
| accordingly | | | | Should you have any queries regarding Data Mining or |
| - Generate more business by reaching hidden markets | | | | Predictive Analytics applications, please feel free to |
| - Target your Marketing message more effectively | | | | contact us. We would be pleased to answer each of |
| - Helps in minimizing risk and improves ROI. | | | | your queries in detail. |
| - Improve profitability by detecting abnormal patterns in | | | | |