|“Predictive modeling allows for more informed marketing decisions and more effective resource allocation. Instead of blasting the same offers to everyone, you can target multiple offers by segment or focus on particular customer groups based on current or potential value.”
Colleen Ryan, Predictive Modeling: Turning Data Into Insight
Today’s WhatIs.com Word of the Day is predictive modeling. It’ s used a lot in customer relationship management (CRM) and enterprise resource planning (ERP).
Colleen Ryan does an excellent job explaining how predictive modeling works. While it might seem like voodoo, it’s really mathematical. Remember learning about probability and outcome back in sixth grade? Well, in the real world, its not just about rolling a pair of dice.
Or maybe it is.
Maybe trying to predict outcomes of any kind is still just…gambling.