In marketing, people face a number of problems.While these problems have been traditionally solved using gut feeling, more recently predictive analytics is being used. The problems normally faced in marketing are as follows:
Knowing attrition rate, potential churn customers
Knowing how many market segments exists
How to allocate marketing budget
Impact of a marketing campaign
Knowing Loyal customers/key drivers
Direct marketing strategy
Key drivers of sales
Choosing between different marketing/product strategy
A number of models predictive models are being used to solve the above problems namely : Churn model, Cross sell /Up sell model, Attrition model, Loyalty model, Market mix model
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