Appendix BTwenty Applications of Predictive Analytics

These applications—ways in which predictive analytics is employed—are covered within the chapters noted. Others beyond these 20 are listed in this book's Central Tables.

  1. What's predicted: Which customers will respond to marketing contact.
  2. What's done about it: Contact customers more likely to respond.
  1. What's predicted: Which ad each customer is most likely to click.
  2. What's done about it: Display the best ad (based on the likelihood of a click as well as the bounty paid by its sponsor).
  1. What's predicted: Whether a stock will go up or down.
  2. What's done about it: Buy stocks that will go up, and sell those that will go down.
  1. What's predicted: Which female customers will have a baby in coming months.
  2. What's done about it: Market relevant offers for soon-to-be parents of newborns.
  1. What's predicted: Which employees will quit.
  2. What's done about it: Managers take the predictions for those they supervise into consideration, at their discretion. This is an example of decision support rather than feeding predictions into an automatic decision process.
  1. What's predicted: The location of a future crime.
  2. What's done about it: Police patrol the area.

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