What is predictive analyst?
In business, predictive analytics are the process of using historical data to analyze past formulas and predict future formulas. This process is used in business to discover potential opportunities and to assess their future risks and rewards. The basis of predictive analysis is the use of relationships between different types of data to estimate the potential or risk of a set of conditions.
Predictive analysts are trying to explain, analyze and predict the behavior of mathematical or scientific means. The company can capture and analyze its customer data and by recognizing patterns, game theory, probability algorithm, or statistics, trying to predict the future customer behavior based on what this behavior has been in the past. Data mining techniques have advanced the field by allowing to sort and categorize data in different ways. The greater the level of granularity to which the data can be sorted, the more useful and accurate the future results will be.
Relationship managementWith customers (CRM), he relies on predictive analysis to understand customer shopping behavior. By using customer data captured at the time of sale and using various statistical techniques, companies can better understand how to sell and sell new products to existing customers. They can also understand how best to motivate people who are not yet customers to try their products or visit their shops. CRM techniques have long been used and are often in the forefront of new applications.
predictive analysts are commonly used in industries such as financial services and insurance. In financial services, companies will use credit scoring to predict the probability that the consumer will be a default loan. The evaluation is based on information about the Customer's credit history and loan applications, compared to the same datafrom similar customers in the past. The insurance industry will try to determine the likelihood of loss on the basis of the applicant's profile and the previous performance of customers with similar profiles.
other industries that use predictive analysis to increase their profitability, include health care and pharmacies, retail, telecommunications and travel. Even the internal income service uses predictive analytics to try to anticipate and identify fraud with income tax. Accountants use this method to try to identify fraud in the financial statements of companies that audit.
In addition to predicting consumers' behavior, predictive analytics can be used to assess aggregated demand in trade, region or national level. It can be used to predict the performance of the entire industry under certain economic conditions. The government can use it to predict factors that affect the entire economy, such as unemployment does not start housing.