Benefits of Predictive Analytics and Data Mining Services
Predictive Analytics is the process of dealing with variety of data and apply various mathematical formulas to discover the best decision for a given situation. Predictive analytics gives your company a competitive edge and can be used to improve ROI substantially. It is the decision science that removes guesswork out of the decision-making process and applies proven scientific guidelines to find right solution in the shortest time possible.
Predictive analytics can be helpful in answering questions like:
- Who are most likely to respond to your offer?
- Who are most likely to ignore?
- Who are most likely to discontinue your service?
- How much a consumer will spend on your product?
- Which transaction is a fraud?
- Which insurance claim is a fraudulent?
- What resource should I dedicate at a given time?
Benefits of Data mining include:
- Better understanding of customer behavior propels better decision
- Profitable customers can be spotted fast and served accordingly
- Generate more business by reaching hidden markets
- Target your Marketing message more effectively
- Helps in minimizing risk and improves ROI.
- Improve profitability by detecting abnormal patterns in sales, claims, transactions etc
- Improved customer service and confidence
- Significant reduction in Direct Marketing expenses
Basic steps of Predictive Analytics are as follows:
- Spot the business problem or goal
- Explore various data sources such as transaction history, user demography, catalog details, etc)
- Extract different data patterns from the above data
- Build a sample model based on data & problem
- Classify data, find valuable factors, generate new variables
- Construct a Predictive model using sample
- Validate and Deploy this Model
Standard techniques used for it are:
- Decision Tree
- Multi-purpose Scaling
- Linear Regressions
- Logistic Regressions
- Factor Analytics
- Genetic Algorithms
- Cluster Analytics
- Product Association
Source:http://ezinearticles.com/?Benefits-of-Predictive-Analytics-and-Data-Mining-Services&id=4766989
Predictive Analytics is the process of dealing with variety of data and apply various mathematical formulas to discover the best decision for a given situation. Predictive analytics gives your company a competitive edge and can be used to improve ROI substantially. It is the decision science that removes guesswork out of the decision-making process and applies proven scientific guidelines to find right solution in the shortest time possible.
Predictive analytics can be helpful in answering questions like:
- Who are most likely to respond to your offer?
- Who are most likely to ignore?
- Who are most likely to discontinue your service?
- How much a consumer will spend on your product?
- Which transaction is a fraud?
- Which insurance claim is a fraudulent?
- What resource should I dedicate at a given time?
Benefits of Data mining include:
- Better understanding of customer behavior propels better decision
- Profitable customers can be spotted fast and served accordingly
- Generate more business by reaching hidden markets
- Target your Marketing message more effectively
- Helps in minimizing risk and improves ROI.
- Improve profitability by detecting abnormal patterns in sales, claims, transactions etc
- Improved customer service and confidence
- Significant reduction in Direct Marketing expenses
Basic steps of Predictive Analytics are as follows:
- Spot the business problem or goal
- Explore various data sources such as transaction history, user demography, catalog details, etc)
- Extract different data patterns from the above data
- Build a sample model based on data & problem
- Classify data, find valuable factors, generate new variables
- Construct a Predictive model using sample
- Validate and Deploy this Model
Standard techniques used for it are:
- Decision Tree
- Multi-purpose Scaling
- Linear Regressions
- Logistic Regressions
- Factor Analytics
- Genetic Algorithms
- Cluster Analytics
- Product Association
Source:http://ezinearticles.com/?Benefits-of-Predictive-Analytics-and-Data-Mining-Services&id=4766989
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