Title: Predictive Analytics Author: Kriko Published: May 23, 2023 Last modified: Jul 7, 2026 --- 1. [Home](https://kriko.io/) / 2. [Glossary](https://kriko.io/glossary) / 3. P Letter # Predictive Analytics **Predictive analytics** is an analytical approach used to estimate future events, behaviours and outcomes. It applies patterns identified in historical and current [data](https://kriko.io/services/data-analysis-insight) to generate forecasts or probabilities. A model may estimate the likelihood of a particular event or predict a future numerical value. However, the results represent probabilities based on the available [data](https://kriko.io/services/data-analysis-insight) and model rather than guaranteed outcomes. Predictive analytics may be used in big [data](https://kriko.io/services/data-analysis-insight) projects, but it is not limited to large datasets. It can also be applied to smaller datasets when sufficient and reliable information is available. Regression, classification, time-series analysis, [data](https://kriko.io/services/data-analysis-insight) mining and machine learning are among the methods used in this process. The appropriate technique depends on the target outcome and the structure of the available data. The process begins by defining the business problem and the result that needs to be predicted. Relevant information is then collected, cleaned and prepared for modelling. Models are trained on historical [data](https://kriko.io/services/data-analysis-insight) and tested against information that was not used during training. Their accuracy, error rates and suitability for the business objective are evaluated before they are introduced into operational use. Predictive analytics can be applied in marketing, finance, manufacturing, logistics and customer management. Organisations may estimate whether customers are likely to respond to a campaign or discontinue a service. Supply chain teams can assess sudden changes in demand, inventory requirements and delivery delay risks. Financial institutions may develop models for credit risk, fraud probability and payment behaviour. In marketing, predicting **customer behaviour** can help organisations direct campaigns towards more relevant audiences. Previous purchases, engagement information and customer characteristics may be analysed to identify groups that are more likely to respond to an offer. Personalised campaigns and customer retention programmes can then be developed. The results should nevertheless be evaluated with consideration for privacy, [data](https://kriko.io/services/data-analysis-insight) quality and potential model bias. Airlines, hotels and restaurants may use predictive analytics for demand forecasting and capacity planning. Historical reservations, seasonality, occupancy rates and event calendars can support estimates of future demand. These forecasts may inform pricing, workforce planning, inventory management and campaign decisions. A properly developed **predictive model** can help organisations identify risks earlier and prepare more effectively for emerging opportunities. ## Discover it in the dictionary ### Lazy Loading Lazy Loading is a performance optimisation technique that delays the loading of images, videos, iframes or similar resources on a web page until they… ### Native Advertising Native advertising is an advertising model in which the ad content is presented in a way that matches the appearance, format and user experience… ### Encode Encoding is the process of converting information into a specific format or structure so that it can be transmitted, stored or processed by another… ### Cumulative Layout Shift (CLS) Cumulative Layout Shift, commonly abbreviated as CLS, is a Core Web Vitals metric that measures the visual stability of a web page. Unexpected movement… ### Usability Usability refers to how easily, efficiently and accurately users can use a product, system, website, application or process. Usability is not limited to digital… ### Automated Machine Learning (AutoML) AutoML, short for Automated Machine Learning, is an approach used to automate selected stages of the machine learning development process. It can support the… ### User Generated Content (UGC) User Generated Content, commonly abbreviated as UGC, refers to content created by users, customers or community members rather than by brands themselves. This content… ### Big Data Big data refers to high-volume, rapidly generated and diverse datasets that are difficult to process using traditional methods. Today, smartphones, computers, sensors, websites, social… ### Pagination Pagination is a web design and development method used to divide long content, product listings, comments or data sets into multiple pages. 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