Most of the predictive power of predictive analytics comes after the all-important data clean-up and the application of a 1st-year uni stats method: Multiple Linear Regression (MLR). We’ll talk about what that is in another post, but for now, just appreciate that MLR is a really straight-forward technique that allows us to see how ‘smooth-changing’, ‘one-directional’ variables can combine to predict your desired output variable.
And most of the time that MLR method will get you to within about 10-30% of the best prediction. It means that at Antara PA we can get you a quick answer on whether your data is predictive.
After that, you can decide whether we apply the next level of tools in the armoury: machine learning methods like Artificial Neural Networks (ANN), Decision Trees (DT) and Support Vector Machines (SVM). These need a real analytics expertise and will improve your prediction by 10-30%.
Take home message: we can rapidly tell you whether your data is predictive. But usually you’ll want to go the next step. If your prediction is really working, why throw away 10-30% of your customers?
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