As we know, business or marketing analytics entirely depends on data. It is done by analyzing data with distinct approaches to extract or deduct information and outcomes. Despite being the ultimate process of synthesizing data, analytics can be performed with two different approaches, i.e., Prescriptive Analytics and Predictive Analytics. These approaches are adopted to reach different end results or outcomes.
Prescriptive Analytics is done with the motive to define the future course of actions that could be taken to tackle the upcoming market situation as predicted with the help of Predictive Analytics.
Sometimes, marketers and data analysts find both these terms intimidating and overwhelming while finding it hard to differentiate the meaning and application of Prescriptive analysis vs Predictive analysis. So, here we are discussing and elaborating the definitions, similarities, and differences of these terms to help you develop a definite and comparative understanding of both types of Marketing Analytics.
What is Prescriptive Analytics?
Prescriptive analytics is the analytical approach to determining the future course of action for making your marketing efforts and other business decisions future-proof. It is a way to stay ahead of the future market trends.
Moreover, prescriptive analytics is not just limited to defining futuristic analytical predictions but also takes their effect and implications under consideration. All in all, this approach is meant for formulating complex analytical strategies that prove efficient and beneficial in the long run. It is apt and adequate for making far-sighted business or marketing decisions.
Key Features of Prescriptive Analytics
The following are the primary features of prescriptive analytics:
- Prescriptive analytics leads to data-driven and calculative decision-making
With the help of advanced AI and ML algorithms, prescriptive analytics takes into account the historical data as well as the existing data, resources, and actions to form the upcoming course of action that would lead to the desired goals and objectives.
- It helps in comprehending or simplifying complex predictions or decisions
As evident, prescriptive analytics not only predicts the upcoming scenarios but also helps comprehend them in a simplified manner to curate suitable strategies. It also simplifies the upcoming actions to deal with the predictive situations and calculations in order to make them favorable in the long run.
- Prescriptive analytics is centered around turning strategies and decisions into adequate executions
Prescriptive analytics not only focuses on formulating counter strategies but also emphasizes turning them into well-planned executions to be prepared to deal with the proceeding scenarios more efficiently and effectively.
Prescriptive analytics is a more calculative, execution-oriented, and far-sighted approach toward analytics, attribution, and decision-making.
Understanding Predictive Analytics?
Predictive analytics aims to analyze and contemplate large datasets to interpret or identify patterns that might help forecast upcoming results and market situations. This approach is more suitable for big data and relies on machine learning algorithms. They help in comprehending and analyzing huge data sets, observing even the minute details that could get overlooked during manual handling.
Overall, predictive analytics does not stress curating strategies and executions but solely focuses on extracting deductive facts and information from large datasets. You can use the yielded output to form your future course of action.
Key Features of Predictive Analytics
The key features of predictive analysis are as follows:
- It defines the problem
The first and foremost feature of predictive analytics is to define and acknowledge the situation and carefully analyze all the relevant and associated information.
- Predictive analytics focuses more on acquiring and organizing data
This analytical approach is all about systematically studying the data in hand to make predictive deductions. For this, it acquires or collects data from all the possible sources and relevant datasets and then organizes them in a systematic manner for analysis and examination.
- It develops predictive data models to access the existing as well as upcoming situations correctly
Predictive analytics uses various machine learning tools and techniques to develop a variety of data models like decision trees, regression models, etc. These predictive models help in accurate analysis and decision-making.
- Predictive analytics ultimately aim to validate and deploy the deduced results or outcomes
Predictive analytics only settles with a result or outcome once its data accuracy has been confirmed and established. It keeps revising its predictive deductions until optimum adequacy and accuracy are achieved.
Major Differences Between Prescriptive Analytics and Predictive Analytics
After learning and discussing Prescriptive Analytics vs. Predictive Analytics independently, let us proceed toward comparing the two and highlighting the factors that tell them apart.
- Predictive analytics focuses on predicting future outcomes, whereas prescriptive analytics focuses on developing actionable insights and suggestions for these predictive outcomes.
- Predictive analytics is generally based on structured historical data, while prescriptive analytics relies on hybrid data, i.e., a fusion of structured and unstructured data.
- Predictive analytics will provide the same predictions and outcomes by analyzing the same data. In contrast, prescriptive analytics will require you to keep updating the data to get relevant suggestions and outcomes.
The blog rightfully addresses the Prescriptive analytics vs. Predictive analytics debate while helping you understand and learn about the two crucial yet distinct analytical approaches. It also helps you get clarity over their uses, benefits, and applications, eventually allowing you to choose the most suitable approach to your business’s nature, requirements, and goals.
You can use marketing analytics tools or software to develop a practical understanding of the application and the difference between Prescriptive analytics vs. Predictive analytics.
Develop a practical understanding of the application and the difference between Prescriptive analytics vs. Predictive analytics. Talk to Us!
Just write to us at email@example.com and we’ll get back to you.