Applications of Predictive Modelling

CRM Solutions uses customer-level models to predict buying persona of customers based on their historical, and present data. Or, you may need to find out the possibility of a customer buying a product according to the price points. Analysis of such present and historical data and creating a model to predict the upcoming outcomes of a product or service is called Predictive Modelling.

Applications of Predictive Modelling

Predictive modeling is also called predictive analytics or predictive analysis and is mainly used in risk management, direct marketing and CRM, collection analytics, and so on.

Let's look at how it is used:

Auto insurance: It identifies the risk of accidents to policyholders.
Fraud detection systems: Predictive modeling is used to determine high-risk transactions. It is also used to predict the possibility of customers terminating her/his services.