Predictive analytics uses statistical techniques and business intelligence technologies to uncover relationships within large datasets to predict future behaviors or outcomes. While predictive analytics can provide benefits like reducing customer churn or improving marketing campaign response rates, it is not widely used due to complexity, underestimating value, high software costs, and reliance on good quality data. The document outlines best practices for predictive analytics including focusing on data management, expecting incremental improvements over time, measuring impact using business metrics, and gaining executive sponsorship for projects.