Predictive analytics is the process of taking data and predict what a person or group of people are likely to do in future. It is digital fortune telling, backed by solid data science.

Netflix has prediction algorithm. It is based on information on what you have watched, the ratings you have given and other behaviour metrics. Netflix recommends movies and shows that you may like. It is big business. Netflix encourages improvements of this algo by declaring a prize for anyone who can improve it by 10 percent. Amazon’s suggestions is another example. Amazon records what you click on, what you look at other sites and where your orders are delivered and more. It knows what you want before you order.

predictive analytics has the capability to go beyond what a user is likely to buy. Location data is likely to suggest where a user is likely to be. You may receive discount codes of restaurants right at the time when you are there.