Modern-day enterprises must stay ahead of the trend and actively look for the new wave of disruption. With rapid innovation and changing market demand, it is challenging for businesses to proactively strategize for these changes. The new-age business leaders are using machine learning (ML) technology and building predictive models to identify trends in consumer behaviour. These trends can be identified based on supervised ML techniques where algorithms use past data to identify patterns.
Predictive modelling is a combination of data mining and machine learning techniques to identify future behavioural changes. It encompasses a variety of statistical techniques which are applied to predict future outcomes based on historical data. The future purchases of a customer are predicted based on his previous purchase data using suitable statistical models and mathematical formulae. Machine learning algorithms, on the other hand, studies and trains to identify a pattern in these historic data and identifies the trend.
Machine learning uses a wide range of models to identify these patterns. These models are built in the application solutions which can be used to create predictive models. Some of the widely used models are Linear Regression and Neural Network.
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The Linear Regression model helps in predicting numeric data such as predicting future returns on investment, whereas the Neural Network helps in making some nuanced predictions.
Predictive modelling is key to understand consumer behaviour better and to optimize marketing productivity. It is one of the widely used techniques across different industries to achieve an edge over competitors. Whether it is a recommendation engine on a streaming platform or predicting customer purchases, predictive modelling is paramount for achieving a competitive edge.
In recent years, the advancement in computing has made predictive modelling feasible, not only for large organisations but also start-ups. Virtual cloud-based machine with greater computing power has made running thousands of models at high speed possible with minimum overheads. As emerging markets are offering new dimensions for business revenue, predictive modelling is guiding business leaders to understand new markets and foresee these opportunities of the future.
Proven Consult delivers this transformation story and helps business leaders to stay ahead of the curve in a dynamic environment. With state-of-the-art predictive modelling solutions, big data and machine learning technology, we create a customized and holistic solution for your business needs.
To learn more about how we can help you contact us on firstname.lastname@example.org or +966 11 411 1127.
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