Knowing how to handle data is just as important as getting it in any digital business or OTT platform. This requires predictive data analysis, a technique that can bring endless benefits to your business and will help you make decisions based on data.
Here’s everything you need to know about predictive data analytics and how to take advantage of its benefits for your business.
What is predictive data analytics?
It is a form of statistical analysis that extracts information to predict future patterns and trends. It is used primarily to predict future trends, especially in the marketing, insurance, finance, and health sectors.
How does predictive data analytics work?
Predictive data analytics works in different ways, depending on its application. Let’s take a look at some of these.
Predicting the future
Human beings have always wanted to predict the future to prepare or make better decisions throughout history. In today’s world, companies -and not just people- work on predicting business, market, and social trends to de their course of action.
These trends can be predicted through a kind of data analysis that reveals repeating patterns. This process begins with data collection. But data collection takes you nowhere unless that data is correctly analyzed.
Types of predictive data analytics
Predictive analysis seeks to identify consistently repeating behavior patterns to which timely actions can be aimed. The data collected can be analyzed using two types of models: classification and regression.
In this model, data is classified according to certain values. For example, you can use it to rank customers based on their churn rate in the first year.
It focuses mainly on prediction. A possible application would be to obtain an estimate of earnings at a specific date.
Predictive data analytics is ideal for anticipating facts, future profit or loss, and for decision-making, as in the data strategy to improve subscription revenues for OTT platforms. At Jump Data-Driven Video, an enterprise data management platform designed specifically for video service players, we believe in the importance of VOD Analytics, OTT analytics, and OTT Insights to provide our clients with a global view based on data, so that they can make the right decisions that will increase their sales.