Predictive analytics can assist companies to, among other things, better understand customer behavior and identify opportunities.
Among business intelligence disciplines, prediction provides the most business value but is also the most complex. Each discipline builds on the one below it-these are additive, not exclusive, in practice.
Predictive analytics can identify the customers most likely to churn next month or to respond to next week’s direct mail piece. It can also anticipate when factory floor machines are likely to break down or figure out which customers are likely to default on a bank loan. Today, marketing is the biggest user of predictive analytics with cross-selling, campaign management, customer acquisition, and budgeting and forecasting models top of the list, followed by attrition and loyalty applications. Source: Wayne Eckerson
