Predictive analytics, being the branch of advanced analytics that is used to predict uncertain future events, uses historical data to forecast how future events will unfold ("What Is Predictive Analytics? - 3 Things You Need to Know", 2019). Organizations that apply predictive intelligence tend to become proactive, and forward-looking by utilizing the big data as opposed to hunches and assumptions, hence enabling them to provide decision options to their advantage.
Most organizations employ the use of predictive analytics to develop their customer relationship management (CRM) objectives, which assist the organization to carry out activities such as marketing campaigns, customer services as well as marketing campaigns ("What is Predictive Analytics ?", 2019). The data utilized is obtained from the customer life cycle which builds up right from acquisition until the ultimate goal of customer retention, as well as win back, is attained. The organization can also use this data to study the behaviour of the market such as customer spending, enabling them to optimize cross sales or sale of additional products to the existing customers. This eventually gives the business a competitive edge as it is able to make use of statistics to ensure they cover a wide market range.
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A good example is the health sector, where pharmaceutical companies rely on current and historical trends form hospitals, clinics and health research centres to enable them to stock the right amount of medicine without having dead stock. This optimization sees the organizations plan their medical manufacturing, hence promulgating a healthy nation which is driven by a quick supply of medicine as well as maximizing profits for the companies by reducing the cumulative production costs. The other way of utilizing predictive analytics is to determine the developments of certain conditions like asthma, diabetes, high blood pressure among other lifetime illnesses. The clinical support system is then developed based on how severe these illnesses are ("Predictive Analytics for the Enterprise - PredictiveAnalytics.org", 2019). This enables hospitals to channel their resources to the patients who need them the most hence saving more lives in the process.
References
What is Predictive Analytics ?. (2019). Retrieved from https://www.predictiveanalyticstoday.com/what-is-predictive-analytics/
What Is Predictive Analytics? - 3 Things You Need to Know. (2019). Retrieved from https://www.mathworks.com/discovery/predictive-analytics.html
Predictive Analytics for the Enterprise - PredictiveAnalytics.org. (2019). Retrieved from https://predictiveanalytics.org/predictive-analytics-for-the-enterprise
