What is predictive analytics? Predictive analytics is advanced analytics used to predict outcomes in the future. It uses statistical algorithms and machine learning to come to a conclusion. You may have heard about using data to optomize marketing campaigns to increase revenue. Yes, your’re right. But, we also need to know how it works and what kind of benefits can we get out of Predictive Analytics.
Do you need a crystal ball? No. All we need to know is what kind of benefits it produces. Lets dive in. I’ve focused on four key areas of how Predictive Analytics is wonderful in each industry, such as marketing, health care, security and risk. I’m going to show you how this technology has dominated society in so many ways.
Builds Customer Relationships
Predictive analysis applications are used in CRMs (Customer Relation Management) Systems are used to implement objectives, such as sales, marketing campaigns, and customer service. CRMs are especially beneficial because it can be used to track the customer’s lifecycle from beginning to end, which include their growth, retention, and win back. You can tell what products and services to cross sell. Analyze customer sales, buying behavior, efficient leads to help drive sales, and target products to sell to organizations. In a way think of a tailor that will drive the right customers and products for your company.
2. Health Care
Predictive analysis actually could be useful to predict when a patient is at risk of developing a harmful disease or ailment, such as diabetes, cancer, asthma or other life threathing illnesses. This tool will help save lives by preventing illnesses or predict the right solution for your patients.
According to SAS, Easy Scripts a large pharmacy benefits company uses analytics to identify those who are not adhering to prescribed treatments that ended up saving between $1000 to $9000 in costs per patient. Now that is significant savings.
3. Risk management
Predictive analytics applications is best used to maximize returns to captial asset pricing model and probability risk management to yield accurate forcasts. Eliminate risks, such as risky deals, costs and signficant losses in the future.
According to SAS, Lenovo uses analytics to understand warranty claims, which drove down costs by 10 to 15 percent.
4. Fraud Detection
Prediction analysis can detect theft before it happens. Applications also are used to find fraudulant transactions, inaccurate applications, false insurance claims, and most of all it can detect these risks online or offline.
Many government agencies are using analytics to improve cyber security, improve service and performance. In addition, the U.S. Census Bureau has been using data to determine population trends for decades.
What predictive analytics can do for you? Do you think using analytics will take over the world? Has it? Was this information useful?
I would like to know your thoughts and opinions about this subject.
Next time I would like to discuss the acutal work on how predictive analytics works. The modeling and process of how you get answers to our problems.