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Predictive analytics is a tool for predicting future outcomes based on past data. It’s used in business, medicine, sports, and more. In the past decade or so it’s become increasingly important as companies try to get ahead of the competition by anticipating their next move.

What is predictive analytics?

Predictive analytics is the use of data to predict future events. It uses algorithms and machine learning to analyze historical data, then make predictions about what will happen in the future based on those findings. It can be used for many different things–from business decisions to healthcare outcomes–but its main purpose is to help you make better decisions by allowing you access to information that would otherwise be unavailable or difficult-to-obtain.

Why is predictive analytics so important?

Predictive analytics helps businesses make better decisions.

It can help companies predict customer behavior, which can lead to more effective marketing campaigns and better sales performance. It also enables firms to determine which products are likely to be in demand, allowing them to plan ahead and prevent shortages of popular items from occurring. Finally, predictive analytics can be used by retailers or manufacturers who want to target specific groups of customers with tailored offers based on their past purchasing history or demographic profile.

How does it work?

Predictive analytics is the process of using data to make predictions about future events and outcomes. Predictive analytics can be used to predict customer behavior, stock market trends, fraud detection and more.

The first step in predictive analytics is collecting data about past events or situations that you want to analyze (also known as “training data”). The second step involves analyzing this information in order to find patterns that may help identify similar situations in the future (i.e., ‘predicting’ what might happen). Finally, once these patterns have been discovered they must be applied appropriately so as not to mislead any predictions made based on them

Who uses predictive analytics?

Predictive analytics is used by companies to make better decisions. It’s a tool that helps them make more informed choices, which can lead to higher profits and lower costs. The following industries use predictive analytics:

  • Marketing – Brands use predictive analytics to predict customer behavior so they can target their ads effectively and increase sales. For example, if you’re shopping online for a new pair of shoes and one brand sends you an advertisement saying “You might also like these other shoes”, that’s predictive marketing at work!
  • Finance – Banks try to predict which customers are likely to default on loans or bankrupt their businesses so they can take action before things get worse (like calling them up). They also use data about past loans/bankruptcies so that people don’t have trouble getting credit again in the future (if someone filed bankruptcy once already).

Where to learn more about predictive analytics.

You can learn more about predictive analytics by reading Predictive Analytics for Dummies. You can also find free online courses on Coursera and Udemy, or join the Predictive Analytics Association to connect with like-minded people who are interested in predictive analytics.

Predictive analytics can help companies make better decisions by learning from past behavior and predicting the future.

Predictive analytics is a tool that companies can use to make better decisions by learning from past behavior and predicting the future.

For example, if you’re looking for a new job and want to apply for an opening at Company A, then predictive analytics will help you decide if this company is right for you. It takes all the information about Company A–its culture, its leadership team and other employees–and analyzes it so that it has a better understanding of what makes that company tick.

Then it uses this information to predict how well suited each candidate would be at that particular job based on their personality type, skillset and goals in life (e.g., whether they want more money or flexibility). This way when someone applies for an open position with us we have a good idea whether or not they’ll fit into our corporate culture without having met them before!


Predictive analytics is a powerful tool that can help companies make better decisions by learning from past behavior and predicting the future. It’s important to remember that not all businesses need predictive analytics, but those who do will find it beneficial. If you’re interested in learning more about this technology or how it could benefit your business, then contact us today!