AI & Automationadvanced
Predictive Analytics
Definition
Using historical data and machine learning to forecast future outcomes, such as customer churn, sales trends, or inventory demand.
Why it matters
Predictive analytics allows businesses to act proactively rather than reactively. Anticipating churn before it happens is far cheaper than trying to win customers back.
Example
A SaaS company uses predictive analytics to identify customers who are 80% likely to churn based on declining login frequency, then triggers a proactive outreach campaign.
Related terms
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