MADISON, Wis. (4/28/14)--Predictive analytics have changed the game for such heavyweights as Match.com, Netflix, Best Buy, and the NBA and credit unions have begun to harness the power of predictions, too, Simon Gao, vice president of consumer analytics for CUNA Mutual Group says in an article in the Credit Union National Association's E-Scan, an online research and advice portal.
Gao said predictive analytics is in a sense more precise in determining patterns' for individual's future actions than forecasting is because it sifts through the mountains of consumer behavior data that has become available in recent years to determine those patterns rather than measuring data in the aggregate.
Predictive analysis allows credit unions to improve targeted mailings, route online advertising through favorable IP addresses,
|Simon Gao, vice president of consumer analytics for CUNA Mutual Group, says "big data" is not a "crystal ball" but rather is an additional tool in the decision-making arsenal of businesses. (CMG Photo)|
,and even determine proper levels of call center staffing for the inevitable peaks and valleys.
"It's not a crystal ball--it's not going to change things overnight," Gao said. "But's an additional tool that businesses can use to impact their decisions."
Consider this, Gao suggested:
The E-Scan article is based on remarks by Gao during a breakout session at the National Association of Credit Union Service Organizations' annual conference in Lake Buena Vista, Fla., and were first carried by CUNA's Credit Union Magazine.