Advantages Of Predictive Analytics

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Predictive Analytics
Predictive analytics is a technology that makes use of the current and existing database to produce a trend and predict future outcomes. In short, it does not tell you what will happen in the future.
Most of the companies use a model named Predictable Model that helps them to know as to which customer is likely to stay and which ones are probably one timers. The model is created after careful study and scrutiny of the sales records and the result is a score that provides the company with an idea in regards to the solvency of the customers. This leads to the companies focusing more on the customers that are not regular and entice them to stay.

Another Useful Tool is Customer mix Trend Analysis

Customer mix trend Analysis
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Use the process of segmentation to grow a strong base for the customers.
Segmentation is a famous and worldwide used marketing practice which is used to divide a larger and broader markets into smaller ones consisting of customer having the common interests, wants and priorities. And then, focusing on those targets and forming strategies to win their loyalty.

Limitations of A Priori Segmentation
Priori segments are the most crucial way of creating market segments. These segments are easy to define and are easily targeted with mass and media, also advertisement. In a priori segmentation the market is divided according to existing demographic criteria like age, sex, social status, education etc.
A priori segmentations are also the simplest of all the segmentation to apply and use. A database can be sorted on the existing data and that data is used to drive sales strategies and marketing campaigns.

Improve Action ability with Predictive Segmentation
The priori segmentation has certain limitations and as a result other models have been developed to overcome certain limitations. As we know customers vary depending on their behavior and attitudes so a new approach is introduced called Predictive Segmentation which differentiates groups of customers and potential customers based on their behavior and their attitude . Predictive Segmentation has been used successfully in segmentation research for over 20
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