A predictive model comprises algorithms and data analysis techniques that leverage historical data and statistics to forecast future outcomes or discern patterns and trends in data. Predictive models find extensive application across various industries, such as marketing, banking, healthcare, logistics, and human resource management.
Predictive models have a primary aim to assist organizations in making well-informed and precise decisions regarding the future. By employing statistical and machine learning techniques, these models analyze historical data and generate mathematical representations capable of predicting future outcomes with notable accuracy. For instance, a company can utilize a predictive model to anticipate future demand for a product or service, enabling effective planning of production and supply.
A predictive model finds applications in various scenarios, including sales forecasting, credit risk analysis, fraud prevention, disease prediction, supply chain optimization, and numerous other use cases.
By employing statistical and machine learning techniques, these models have the ability to accurately predict future outcomes. This empowers companies to effectively plan and make informed decisions within dynamic and fiercely competitive environments.
The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.