Online discussion questions – Day 36 (Apr 13) – Predictive Analytics
- Any other examples of Predictive Analytics that you know?
- What kind of future life events could retailers like Target predict about customers? How?
- If you are a manager of an election campaign, how would you find voters that are most likely to be persuaded by your campaign?
20 Responses to Online discussion questions – Day 36 (Apr 13) – Predictive Analytics
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Using Predictive Analytics, retailers can observe what type of merchandise are popular with customers at different store locations. They can use this information to send more of certain types of merchandise to one location and collect the most revenue possible.
Target can predict the age of a child over the years based on the clothing and/or toys the parents buy for them. They can use this to make sales on a certain age groups apparel and/or toys.
Target might be able to predict if someone was moving into a new apartment/house. If they are buying a lot of new furniture or decor, then Target will be able to suggest some items to them that might assist them with their home decorating.
Another example of predictive analysis could be in schools and the education system. Schools could analysis attendance and predict those students who are more likely to drop out and aim programs at them to encourage staying in school. Schools could also analysis grades and for those students who seem to be struggling aim tutoring programs at them. Or for the students succeeding put them in honors programs or more challenging classes.
Retailers such as Target can use data analytics to predict certain life events such as going to college, moving or even going on a vacation. For example, if you are moving into a new apartment or into a new living space as is, that individual will be buying new furniture, new blinds, silverware, etc. they’ll also see that many people will buy essentials for cleaning so they can prepare to live on their own or to just update for the new place. Also, you’ll see people non-essentials to decorate and to personalize the new living space.
Target could use predictive analysis to cater certain products for a group of customers so that they will have greater revenue. Target can see how much a selective group of customers at a certain area shop for a particular product. They can use this information to increase their stock of that particular product in that store. Colleges can also use predictive analysis to analyze their applicant pool for each year.
A business such as Target will recognize and predict is someone is going on vacation. For example, if someone is buying bathing suits and dresses in the middle of winter, Target might assume this person is going on vacation somewhere hot. Therefore, Target may send out advertisements and coupons about other things needed for vacation somewhere hot such as sunblock, flip-flops or sunglasses.
As another example of predictive analytics, I would say that many scientists observe ‘global climate change’ to predict the national crisis by natural disaster. For example, one of the biggest issues is global warming that some scientists say that it melts a lot of iceberg in the arctic or antarctic so that increasing sea level would submerge some countries in the sea. So, for predictive analytics, many countries in the United Nations cooperate with each other to cope with the global crisis.
When customers apply to buy car insurance, they must provide information such as their age, area they live, and credit score. Because this data is highly correlated with expected claims, Insurance companies use this information on new clients to predict their riskiness. The insurance company determines if they will insure this individual and if so how much it will have to charge in premium and set aside in reserves.
Predictive Analysis can be used to predict when customers are moving/going away to college. It can also predict lifestyles, such as that of an athlete. The company can then use this information and offer then coupons for athletic clothing, shoes, and high protein foods/products.
Companies such as Target could predict event such as having a child going to school when the adult buys a lot of school supllies, and they can also predict event such as a person moving in a new place when the person is buying a lot of decorations.
Target can predict a customers future life by using Predictive Analysis to recognize trends throughout the year such as what products are being sold the most per month due to the seasons/holidays/weather. When determining what products during what months are most popular , target can predict the demand for certain products and be prepared to meet that demand when certain times of the year call for it.
Another example of predictive analysis would be fantasy football. People use the information and statistics collected on the players in their previous football seasons in order to figure out where and how they will play in the upcoming football season. Target could use predictive analytics to figure out if and when you’re moving by noticing your buying storage containers, boxes, and packing tape. If I was an election campaign manager, I would use peoples “likes” on social media, as well as, their frequently visited websites in order to evaluate a voter’s social properties and political preferences.
Through predictive analysis, Universities may be able to predict how students are going to do in future classes based on their past performance. This is useful for advisers who can help students find what they are good at based on their performance in class.
In the case of Target, based on customer shopping patterns, they can learn about which students are going away for college and offer them deals on all of the supplies, furniture, and necessities that the customers are purchasing.
Through predictive analysis, Professional Sports teams use college numbers to predict how athletes will pan out at the professional level. Target can predict the age of a child, whether you moved into a house recently or are looking to move. For an election campaign, you can use Twitter or Facebook to see the amount of followers or people who like your page, this will give you a pretty accurate number of the people who will support you.
An example of predictive analytics that I know of would be how in professional soccer based on prior ranking and past performance, teams as well as players can be predicted to perform a certain way as well as be ranked highly or lowly by the end of season. They can predict whether a young lady is pregnant or not based on the items they purchase and their spending habits.
Another example of Predictive Analytic that I know is that stock traders can use histriocal data to predict the future performance of the market.
Retailers like Target can predict customrs future life events such as moving. When customers buy more curtains, furnitures and bedding. These products suggest that the customers may move to a new place and want to make their house more clean and pretty.
If I am a manager of an election campaign, I would use the yelp reviews to classified voters with different income. Then I will know which class I should focus on advertising.
An example that I am aware of in my town is the locate Grocery store has an app, which lets people see their prices and make check lists. You use the check list when shopping just like you would do when you write one on paper but this way to can log what your are putting on your list. This way they see what your going to buy before you buy it so they can predict what items to stock up on so they are prepared for everyones orders.
Through predictive analytics, retailers such as banks could begin to predict which customers use the lobby area, ATM, or drive thru to make transactions. From there, they could send promotions to customers that do not frequent the lobby in order to increase sales and business.
It is crazy how Target can determine the age of a child based on what you end up buying at their store. They apply marketing and sales strategies based on their customers.