A predictive analytics professional uses data, statistical algorithms, and machine learning techniques to pinpoint the likelihood of future events based on historical data. The goal of predictive analytics is to go past what has happened and to offer the best assessment of events that will occur in the future. (SAS.com).<!- mfunc feat_school ->
Predictive analytics has been around for many years, but it is a technology that is becoming more important in the 21st century. More companies are using predictive analytics to boost their bottom line and advantage over competitors. Why is this happening now?
- Increasing volumes and types of data, and greater interest in using data to offer valuable insights.
- Faster and more expensive computers.
- Software is easier to use.
- Greater competition and difficult economic conditions that make it imperative for more competitive differentiation.
Companies also are turning to predictive analytics for these reasons:
- Detect fraud: Using several analytics methods can enhance pattern detection and prevent crimes from occurring.
- Optimize marketing campaigns: Predictive analytics is helpful to determine what customer purchases and responses are, as well as allow for cross-sell opportunities.
- Enhance operations: Many organizations use predictive models to manage resources and forecast inventory better. For example, airlines now use predictive analytics to establish ticket prices.
- Reduce risk: FICO scores are a well-known use of predictive analytics to assess the likelihood of a buyer to default on purchases.
Predictive Analytics Salary Outlook
Becoming a predictive analytics professional requires years of education. So it is useful to understand what your salary potential is in this exciting field.
SEE ALSO: See Online Master’s in Business Analytics Degrees
Below is detailed salary information about predictive analytics and related specialties.
Bureau of Labor Statistics
While the Bureau of Labor Statistics does not provide salary information for this precise occupation, it does offer insightful information about operations research analysts, who may use predictive analytics for much of their work. BLS states the median salary for operations research analysts was $83,300 in May 2028. The lowest 10% earned less than $46,800 and the top 10% earned more than $136,200 per year. (BLS.gov). Also, median salaries in this field in the top industries were:
- Federal government: $113,900
- Manufacturing: $92,100
- Professional, scientific, and technical services: $86,700
- Management of companies and enterprises: $85,200
- Finance and insurance: $82,300
Another related field in BLS data is logistician. This data professional earned a median salary of $74,600 in May 2018, with the top 10% earning $119,000 or more. (BLS.gov)
Payscale.com reports the salary for big data analytics is $108,000 on average. It also provides salaries for these occupations: (Payscale.com)
- Data scientist: $98,000
- Analytics manager: $97,000
- Director of analytics: $137,000
- Data engineer: $96,000
- Senior data scientist: $128,000
- Software engineer: $103,000
- Data analyst: $66,000
- Business insight and analytics manager: $104,000
- Senior manager, business analytics: $125,000
- Data science director: $162,000
Payscale.com also provides salary information for these skills related to predictive analytics: (Payscale.com)
- Data analysis: $59,800
- Microsoft Excel: $56,200
- SQL: $63,100
- Database management and reporting: $59,100
- Statistical analysis: $61,300
The average data analyst salary is $66,000.
The pay level for data analysts rises as job experience increases:
- Less than one year of experience: $59,700
- One to four years of experience: $65,600
- Five to nine years of experience: $73,100
- 10 to 19 years of experience: $78,500
Salaries for data professionals and analysts, such as predictive analytics professionals, can vary by the city as well. Salaries can be more or less than the average of $66,000:
- San Francisco: +36%
- Los Angeles: +16%
- Washington DC: +10%
- New York City: +6%
- Atlanta: +1%
- Boston: -2%
- Chicago: -7%
Ziprecruiter.com reports the average salary for predictive analytics is $117,899 with a range between $27,000 and $181,000. (Ziprecruiter.com).
This source also reports the average salary for a data analyst is $66,648 with a range between $25,000 and $118,500. Most people earn between $47,000 and $80,500. (Ziprecruiter.com)
Indeed.com reports the average salary can range from $122,200 for a data scientist to $149,700 per year for a director of analytics. (Indeed.com).
For the related job of data analyst, this website reports an average salary of $70,200. It also reports these salaries from major employers for data analysts:
- Microsoft: $116,000
- CGI Group: $115,800
- Facebook: $113,000
- Freddie Mac: $111,000
- Bank of America: $110,000
This website reports that the average salary for people with predictive analytics and modeling skills is $190,994, with a range between $51,800 and $330,000. (Salary.com).
Below are more salaries for various related job titles:
- Business data analyst I: $57,800
- Business data analyst II: $74,400
- Business data analyst III: $93,400
- Data science director: $188,000
- Data science manager: $124,700
- Data scientist I: $62,900
- Data scientist II: $81,700
- Data scientist III: $105,300
- ERP business manager: $136,700
Job Outlook for Predictive Analytics
BLS data does not include exact employment data for professionals who work in predictive analytics. But the related occupation of operations research analyst, who uses predictive analytics in their work, will rise by an impressive 26% by 2028. This rate is much faster than average for all occupations. (BLS.gov)
As technology is improving and companies want to take advantage of the availability of so much data, demand for workers skilled in predictive analytics and related specialties should grow quickly. Also, increasing demand will occur in the analytics field to enhance business planning and major decision-making.
Further, advances in technology make it easier and faster for companies to obtain data about their products, services, and customer base. Enhancements in analytics software also make operations research and related tasks more affordable and applicable to more business needs. More companies are expected to hire analytics professionals such as operations research analysts and data analysts to make more efficient and profitable business decisions.
Predictive analysts, data analysts, and operations research analysts manage and analyze big data to enhance business operations, supply chains, marketing, and pricing models.
Also, BLS data shows the related occupation of market research analyst will see a 20% increase in jobs by 2028, which is also much faster than average. (BLS.gov). Employment in this related field also is being driven by the greater use of data and market research to make better business decisions.
Market research analysts with skills in predictive analytics will be needed to understand the desires of customers and to measure how effective business and marketing decisions are. Market research also will be used in greater quantities to allow companies to review customer satisfaction and collect feedback on how to improve services and products.
Predictive Analytics Salary by State
|State||Hourly Wage||Annual Salary|
|New York - Predictive Analytics Salary||$62.04||$129,053|
|Massachusetts - Predictive Analytics Salary||$61.54||$127,998|
|New Hampshire - Predictive Analytics Salary||$60.39||$125,607|
|Maryland - Predictive Analytics Salary||$57.34||$119,257|
|Hawaii - Predictive Analytics Salary||$56.71||$117,948|
|Alaska - Predictive Analytics Salary||$56.70||$117,935|
|Nevada - Predictive Analytics Salary||$56.70||$117,935|
|Montana - Predictive Analytics Salary||$56.70||$117,935|
|North Dakota - Predictive Analytics Salary||$56.70||$117,935|
|Wyoming - Predictive Analytics Salary||$56.70||$117,935|
|Idaho - Predictive Analytics Salary||$56.70||$117,935|
|Vermont - Predictive Analytics Salary||$56.61||$117,741|
|Nebraska - Predictive Analytics Salary||$56.53||$117,585|
|Connecticut - Predictive Analytics Salary||$56.46||$117,437|
|Washington - Predictive Analytics Salary||$56.38||$117,262|
|Rhode Island - Predictive Analytics Salary||$55.81||$116,084|
|California - Predictive Analytics Salary||$55.75||$115,957|
|Virginia - Predictive Analytics Salary||$55.48||$115,388|
|New Jersey - Predictive Analytics Salary||$54.35||$113,042|
|Arizona - Predictive Analytics Salary||$54.08||$112,487|
|West Virginia - Predictive Analytics Salary||$53.98||$112,269|
|Colorado - Predictive Analytics Salary||$53.84||$111,992|
|Pennsylvania - Predictive Analytics Salary||$53.66||$111,606|
|South Dakota - Predictive Analytics Salary||$53.58||$111,453|
|Minnesota - Predictive Analytics Salary||$53.57||$111,428|
|South Carolina - Predictive Analytics Salary||$53.48||$111,248|
|Oregon - Predictive Analytics Salary||$53.44||$111,152|
|Tennessee - Predictive Analytics Salary||$53.39||$111,041|
|Delaware - Predictive Analytics Salary||$53.24||$110,745|
|Utah - Predictive Analytics Salary||$53.09||$110,427|
|Kentucky - Predictive Analytics Salary||$53.00||$110,243|
|Kansas - Predictive Analytics Salary||$52.77||$109,763|
|Ohio - Predictive Analytics Salary||$52.68||$109,570|
|Indiana - Predictive Analytics Salary||$52.42||$109,027|
|Oklahoma - Predictive Analytics Salary||$52.29||$108,760|
|Wisconsin - Predictive Analytics Salary||$52.10||$108,363|
|Iowa - Predictive Analytics Salary||$52.03||$108,215|
|Louisiana - Predictive Analytics Salary||$51.85||$107,851|
|Maine - Predictive Analytics Salary||$51.61||$107,350|
|Texas - Predictive Analytics Salary||$51.08||$106,255|
|Alabama - Predictive Analytics Salary||$50.69||$105,425|
|Georgia - Predictive Analytics Salary||$50.68||$105,414|
|Arkansas - Predictive Analytics Salary||$50.64||$105,337|
|New Mexico - Predictive Analytics Salary||$50.22||$104,458|
|Mississippi - Predictive Analytics Salary||$49.95||$103,889|
|Michigan - Predictive Analytics Salary||$49.74||$103,460|
|Illinois - Predictive Analytics Salary||$49.62||$103,217|
|Missouri - Predictive Analytics Salary||$48.65||$101,192|
|Florida - Predictive Analytics Salary||$47.71||$99,245|
|North Carolina - Predictive Analytics Salary||$43.44||$90,352|
Source: Ziprecruiter.com, January 2020.
Professionals who are skilled in predictive analytics, data analysis, and operations research will find ample job opportunities in a global economy that is more operated and dependent on data analysis than ever before. Research shows demand for these jobs is rising quickly, and the salaries can range from $60,000 to $70,000 for entry-level professionals to more than $150,000 for data analysts with the most education and experience.