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Data Defined: Predictive Analytics

What 'Predictive Analytics' Mean for Marketers

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Each week, DataWorks defines a data-related term marketers need to know. Last week, we started with the obvious: Big Data. Today we're on to predictive analytics.

What is Predictive Analytics?
Predictive Analytics uses data mining, modeling and statistics to forecast consumer behavior or outcomes of marketing efforts. Marketers apply predictive analytics to surface patterns in their data for CRM, to predict customer behaviors and supply-chain factors, and to retain customers and develop new products. Predictive analytics are also used for a variety of purposes outside of marketing, including credit scoring.

Kevin Geraghty, Head of Analytics at 360i, on Predictive Analytics:
"Predictive analytics processes big, unstructured data sets -- often in real time. For example, when a customer is browsing a website, predictive analytics evaluate very specific aspects of the customer's behavior and characteristics to deliver a personalized and compelling marketing message. A marketer's website is just one of many places personalized real-time messages are delivered. Predictive analytics also support real-time bidding for display and optimization of social-media communications."

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