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What is predictive analytics and its importance in the retail market?

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The predictive analytics it encompasses a variety of statistical techniques from predictive modeling, machine learning, and data mining that analyze current events and historical sites to make predictions about future events or unknown.

The predictive analysis it is an area of statistics that deals with extracting information from data and using it to predict trends and behavior patterns.

Often, the event is unknown of interest is in the future, but the predictive analysis can be applied to any type of event, whether it's in the past, the present or the future.

For example, identifying suspects after a crime has been committed, or credit card fraud. The core of the predictive analysis it relies on capturing relationships between explanatory variables and the predicted occurrence of the past, and exploit them to predict the unknown outcome.

However, it is important to note that the accuracy and usability of results will depend largely on the level of data analysis and the quality of assumptions.

1. Customization

A recommendation engine can give to the associated sales information on the past purchases of the customers and the purchasing habits of customers similar to suggest recommendations of articles.

The predictive analysis add another value: you can predict the next actions of their clients and to make recommendations on items of interest based on their behavior and preferences.

2. Prices

The use of predictive analytics for pricing enables retailers to take into account all possible factors in real time, something that would be impossible without the data science and machine learning.

In addition to considering the pricing strategies of the competitors, a pricing model predictive you can take into account everything from sales data in real-time to information about the weather for optimising prices in a given time.

3. Foresight intelligent income

Instead of predicting income based on historical data of buyers who may not be customers in the world voluble of the retail trade, predictive analysis allows a more accurate forecast based on the buying habits predictive of new customers.

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