Predictions are very useful for effective targeting of prospects and customers, increasing retention, risk scoring, and long-term value calculations.
Predictive analytics relies on building algorithms to make predictions about behaviour, events or attitudes. Using all available information, we predict future events to improve decision making. We create these predictions using algorithms (machine learning or statistical) but we also care to spend time on understanding the business problem and providing intuitive recommendations based on the insights extracted from the drivers of the predictive model.
Predictive algorithms make use of all the information available and chose the best trade-off between precision and interpretability by exploring both state-of-the-art algorithms and traditional ones.