Data · Definition

What is Predictive analytics?

Predictive analytics uses historical data, statistics and machine learning to estimate what is likely to happen next, such as future sales, customer churn or equipment failures. It answers "what will probably happen" rather than "what happened".

Why it matters for your business

Knowing what is likely to happen lets you act early, by ordering stock, contacting at-risk customers or scheduling maintenance before a breakdown.

Example

A subscription business scores each account for churn risk every week, and the success team calls the highest-risk customers first.

Related terms

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