Predict Outcomes Early

Predict outcomes early using the Oracle NetSuite Analytics Warehouse predictive applications to analyze data. These predictions help to improve efficiency, mitigate risk, and identify opportunities.

During the daily pipeline refresh, the prediction applications process the updated data, generate new predictions, and write it back to Autonomous Data Warehouse (ADW). You apply security to predictions through duty and data roles.

Currently, Churn Prediction and Stockout Prediction applications are available to use.

Predict Customer Churn

The Churn Prediction application classifies whether a customer has churned or not. For customers who haven’t churned, it predicts if a customer is expected to churn (expected to reduce or stop purchasing) and the churn timeframe (when the churn is expected to happen).

This application provides:

Automated insight into at-risk users:
- Can provide visibility to stakeholders on where to focus resources to limit churn to the most at-risk users
- Allows business to segment at-risk user groups and build tailored retention efforts
Early warning of potential revenue impacts:
- Predict impact on revenue of losing at-risk users within time period, allowing businesses to take preemptive actions
- Help business quantify the hidden costs of churn further
- Cost of acquiring new users
- Potential negative impact of brand reputation
- New user onboarding costs

This application uses your sales history that includes the sales order, status, customer address, currency, item, and payment method details to predict the churn. If the gap from today to the last purchase in days falls in the 90th percentile of all historical delays, the application identifies it as a churn automatically. You can manually specify the number of months that constitute a churn (months since last customer transaction date). If last transaction date is outside of this window, the application identifies it as a churn.

Ensure to activate the Sales functional area prior to activating this application.

Select the toggle for Enable NetSuite Predictive Applications in Pipeline Features under the Preview Features tab on the Enable Features page. See Make Preview Features Available.
On the Generally Available Features tab, select the toggle for NetSuite Churn Prediction under Functional Areas.
Navigate to Data Configuration, under Applications, click NetSuite Predictive Applications.
On the NetSuite Predictive Applications page, click Create, in step 1 of the NetSuite Predictive Applications wizard, select Oracle NetSuite Predictive Analytics Applications in Offerings, select Churn Prediction in Functional Area, and click Next.
In step 2 of the wizard, select the parameters to use for the functional area that you've selected and click Next:
- Months of transaction data to use – The past number of months of training data required for training a prediction model. For example, if you specify 72, the application uses the past 72 months of data for predicting the churn.
- Churn Identification Method – There are 2 methods of determining churn. One is automatic and the other is manual. In the case of manual method, if you haven’t purchased in past certain months, the application considers those number of months as churn. For the auto method, the application identifies churn if you didn’t purchase within a timeframe determined by an algorithm.
- Expected churn rate (only for auto method) – This parameter controls the percentage of churn.
- Absence duration (only for manual method) – Number of months without purchases.
In step 3 of the wizard, review your selections for the functional area activation and click Next.
In step 4 of the wizard, select when to initiate the functional area activation and click Finish.

Predict Stockout for Inventory Items

Predicts whether an item will go out of stock for a particular location in a chosen number of weeks.

Predicts if an item at a particular inventory location is expected to go out of stock within a user-defined period, for example, 3 weeks. It uses sales and inventory snapshot data such as item, item related sales orders, inventory data, and location to predict stockout.

This prediction application provides:

Automated insight and analytics of inventory at risk of stockout.
Ability to generate increased revenue and improved customer satisfaction by avoiding stockouts, reducing lost sales, and increasing revenue.
Opportunities to ensure customer satisfaction remains high and potential to build brand ambassadors.
Competitive advantage (if competitors face frequent stockouts) by providing potential to gain competitor’s market share and potential to build stronger relationships with suppliers to limit disruption.
Data-driven insights to the stakeholders to make informed decisions about inventory management that they can use to improve demand forecasting.
Supply chain optimization by ordering goods from suppliers earlier.

Ensure to activate the Sales and Inventory functional areas prior to activating this application.

Select the toggle for Enable NetSuite Predictive Applications in Pipeline Features under the Preview Features tab on the Enable Features page. See Make Preview Features Available.
On the Generally Available Features tab, select the toggle for NetSuite Stockout Prediction under Functional Areas.
Navigate to Data Configuration, under Applications, click NetSuite Predictive Applications.
On the NetSuite Predictive Applications page, click Create, in step 1 of the NetSuite Predictive Applications wizard, select Oracle NetSuite Predictive Analytics Applications in Offerings, select Stockout Prediction in Functional Area, and click Next.
In step 2 of the wizard, select the parameters to use for the functional area that you've selected and click Next:
- Months of data to use – Specify the past number of months data to use for prediction. Enter a number between 1 and 24.
- Duration for Stockout Prediction – Number of weeks into the future the application uses to predict if a given item goes out of stock. Up to 8 weeks.
In step 3 of the wizard, review your selections for the functional area activation and click Next.
In step 4 of the wizard, select when to initiate the functional area activation and click Finish.