Identifying the right market segment for a product can result in substantial savings in sales cost. Predictive analytics can identify target market segments based on real data and indicators. Predictive analytics can also identify signs of dissatisfaction in specific customer segments and help in putting remedial measures in place before it is too late. In addition, Predictive Analytics can help in identifying the customers who are likely to use the company’ products and services consistently over an extended period.
Predictive Analytics is thus the ability to predict, with a fair degree of accuracy, what will happen in the future by combining real-time, historical and third-party data. Options are now available for scalable cloud-based ‘Predictive Analytics as a Service’ offering from several specialist providers.