Welcome back to my blog. Predictive analytics is using historical data to predict future trends and events. It is a topic that has always interested me, but I’ve never delved into before, until week. There are endless ways that predictive analytics can be used. For example, business’ building predictive models will help them attract, retain and grow their most profitable customers. Overall, data analysts can uncover patterns, identify trends and make accurate predictions by using predictive analytics and statistical techniques. In this blog, I will discuss a few ways that data analysts/consultants can help businesses by using predictive analytics.

The first example of how we could help a business using data analytics is by predicting customer churn rate. We could identify customer who are likely to stop using a service or cancel a subscription which will allow businesses to take proactive measured to reduce such churn rates. As data analyst we would give the client a list of customers that we are concerned will leave and the business can create targeted retention campaigns, personalized offers, or improve customer experience in order to prevent those customers from leaving. The second example is we could forecast sales for businesses to help them make more informed business decisions by being able to allocate resources more effectively, plan production and optimize inventory levels. We can do all these things by analysing previous sales data along with relevant factors to the business, like economic indicators and seasonality, for example. Fraud detection is the third example I will discuss in this blog. Many businesses will want two things, one is to protect their customers from fraud as well as preventing financial loss for themselves. Well, us data analyst can help here by building a predictive model to detect fraudulent activities looking for anomalies or patterns that stand out to us. We can then let the business know of all the fraudulent actions that we have flagged to stop them from losing even more money in the future.

This is just a very brief intro into the world of predictive analytics and how it can be harnessed to enrich our clients understanding of their data and the future of their business. I am excited to learn even more about the world of predictive analytics and I do plan on doing more blogs on the topic as I learn more. Once I gain my Alteryx Advanced Certification then I will start studying for the Predictive Master Certification to gain more skills. I’ll also put some links below to sights that I found interesting to get you into the topic as well. Short blog this week but I hope you enjoyed it. Thanks.