Data Mining and Predictive Analytics: Know The Difference

Data Mining Vs Predictive Analytics: Learn The Difference & Benefits

With big data becoming the lifeblood of organizations and businesses, data mining and predictive analytics have gained wider recognition. Both are different ways of extracting useful information from the massive stores of data collected every day. Often thought to be synonyms, data mining and predictive analytics are two distinct analytics methodologies with their own unique benefits.

This blog examines the differences between data mining and predictive analytics. 

Difference Between Data Mining and Predictive Analytics

Data mining and predictive analytics differ from each other in several aspects, as mentioned below:


Data mining is a technical process by which consistent patterns are identified, explored, sorted, and organized. It can be compared to organizing or arranging a large store in such a way that a sales executive can easily find a product in no time. Various reports state that by 2020 the world is poised to witness a data explosion. Therefore, data mining is a strategic practice that is necessary for successful businesses. It helps marketers create new opportunities with the potential for rich dividends for their businesses. 

Predictive analytics is the process by which information is extracted from existing data sets for determining patterns and predicting the forthcoming trends or outcomes. It uses data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data. In other words, the aim of predictive analytics is to forecast what will happen based on what has happened. 

Techniques and Tools

Although there are many techniques in vogue, data mining uses four major techniques to mine data. They are regression, association rule discovery, classification, and clustering. These techniques require the use of appropriate tools that have features like data cleansing, clustering, and filtering. Python and R are the two commonly used programming languages in data mining.

Unlike data analytics, which uses statistics, predictive analytics uses business knowledge to predict future business outcomes or market trends. Predictive analytics uses various software technologies such as Artificial Intelligence and Machine Learning to analyze the available data and forecast the outcomes.


Data mining is used to provide two primary advantages: to give businesses the predictive power to estimate the unknown or future values and to provide businesses the descriptive power by finding interesting patterns in the data.

Predictive analytics are used to collect and predict future results and trends. Although it will not tell businesses what will happen in the future, it helps them get to know their individual consumers and understand the trends they follow. This, in turn, helps marketers take necessary, action at the right time, which in turn has a bearing on the future.

Related Reading: Predictive Analytics: The Key to Effective Marketing and Personalization 


Data mining can be broken down into three steps. Exploration, wherein the data is prepared by collecting and cleaning the data. Model Building or Pattern Identification by which the same dataset is applied to different models, thus enabling the businesses to make the best choice. Finally, Deployment is a step where the selected data model is applied to predict results. 

Predictive analytics focuses on the online behavior of a customer. It uses various models for training. With the use of sample data, the model could be trained to analyze the latest dataset and gauge its behavior. That knowledge could be further used to predict the behavior of the customer. 


Data mining is generally executed by engineers with a strong mathematical background, statisticians, and machine learning experts. 

Predictive analytics is largely used by business analysts and other domain experts who are capable of analyzing and interpreting patterns that are discovered by the machines. 


Data mining enables marketers to understand the data. As a result, they are able to understand customer segments, purchase patterns, behavior analytics and so on. 

Predictive analytics helps a business to determine and predict their customers’ next move. It also helps in predicting customer churn rate and the stock required of a certain product. Additionally, predictive analytics enable marketers to offer hyper-personalized deals by estimating how many new subscriptions they would gain as a result of a certain discount, or what kind of products do their customers seek as a complement to the main product they bought from the seller. 

Related Reading: Using Predictive Analytics For Individualization in Retail

Effect of Data Mining and Predictive Analytics on the Future 

The global predictive analytics market is estimated to reach 10.95 billion by 2022. We are now in a period of constant growth, where businesses have already started using data mining and predictive analytics sift through the available data for searching patterns, making predictions and implementing decisions that will impact their business.

Both approaches enable marketers to make informed decisions by increasing productivity, reducing costs, saving resources, detecting frauds, and yielding faster results. To make the best use of data mining and predictive analytics, you need the right guidance and the best expertise. Talk to our experts and find out how Fingent can help your business scale up with the power of data. Get on your way to a digital-first future with Fingent.  

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Dhanya V G

Dhanya V G

Working as a Data Analyst at Fingent, Dhanya has an experience of 4+ years serving industries with the latest technology advances like Business intelligence, Data Visualization and Reporting. With passion in Analytics and Tableau, Dhanya works on articulating data insights to compelling stories that helps our clients make better business decisions.

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