Predictive Analytics

Predictive Analytics was the buzz word during the late 2000’s. However unlike many other buzz words predictive analytics proved its worth when done by the right analyst. There are two main uses for predictive analytics; prediction and classification.

  • Prediction is a way to calculate a numeric value (e.g. sales, calls, revenue, number of customers etc.). If you know something about x,y and z, what do we expect this numeric value to be?
  • Classification is a way to (as the name applies) classify. If you know something about x,y and z what group should it belong to?

    • Predictive Analytics vs. Big Data

    Today much of the hype of predictive analytics has been over taken by the promise of Big Data. But don’t be fooled. Big Data is just a form of predictive analytics for those companies with large data streams. But in truth most companies do not have the data required to perform Big Data analytics and do not want to hire the talent to do those analyses.

    How Can Predictive Analytics Help Your Company?

    Predictive Analytics can benefit any company of any size. But what exactly can predictive analytics do for your company? To list a few it can help with:

  • Forecasting
  • Direct Marketing Efforts (Targeting Strategies)
  • Customer Segmentation
  • Customer Life Time Value
  • Text Analytics (Social Media)
  • Fraud Detection
  • Media Mix Models
  • Pay Per Click Optimization

    • How Do You Get Started

    Predictive analytics makes your company run more efficiently. To take advantage of this you need the right people and tools. There are many tools out there to use but the people are hard to find. Make sure they have the technical skill to use the tools, the statistical background to understand the techniques, and the business knowledge to make sense of their analytics. Straight Line Marketing LLC can help your company pick the right tool, help get your team going, and/or handle all your predictive analytic needs.