Predictive analytics optimizes decision making by providing organizations insight on how to best maximize profitable growth, given their business constraints and key objectives. Organizations use predictive analytics models to seek relationships between different data sources. Companies often utilize predictive analytics to forecast future activity, behavior and trends.
Internet marketing is one outlet where predictive analytics has notable business impact. Organizations with online services turn to predictive analytics to discover browsing history trends of web visitors to deliver online ads based on their profile and predicted interests. This insight allows for targeted ads that increases the probability online visitors will be interested in them.
Predictive analytics helps businesses better understand their customers, shopping patterns and what products and services they are likely to purchase. Additionally, it provides better inventory management and deceases the cost of storing inventory for a long time.