Definition
Diagnostic Analytics is the process of leveraging data to explain why a particular event occurred. It's the logical next step in data analysis, following Descriptive Analytics, which focuses on identifying trends.Explanation
Diagnostic Analytics utilizes data to analyze correlations between variables within a dataset and pinpoint the precise causes behind specific trends or behaviors. The insights gained from these correlations enable sales-specific problem analysis and customer clustering. Typical applications in sales include personalization, customer segmentation, and customer tiering.This step builds upon Descriptive Analytics, which typically represents the initial phase of data analysis in organizations, merely outlining historical facts and trends. Diagnostic Analytics goes a step further to uncover the underlying reasons and root causes behind these outcomes. In short, it aims to explain why something happened.