Last Updated on May 5, 2023 by Admin
A large online ordering company collects the sales history of its customers. Using this historical data, the online company sends customized sales advertisements to a specific group of customers. Which data analytics method is being used?
Answers Explanation & Hints:
Prescriptive analytics involves the use of advanced analytical techniques and algorithms to make recommendations and predictions about what actions should be taken in the future to optimize business outcomes. It relies on a combination of historical data, current data, and external data sources to provide guidance on what actions to take, and it aims to provide the best possible outcome by considering multiple scenarios and potential decision pathways.
In the case of the online ordering company, the use of historical sales data to send customized sales advertisements to a specific group of customers is an example of prescriptive analytics. The company is using this data to prescribe a course of action (sending targeted sales ads) based on an analysis of historical data to improve the outcome (sales revenue) of its business. By analyzing the data and identifying patterns and trends, the company can make recommendations on what actions to take to optimize the outcome.