How can I use predictive marketing to my advantage?

Advantages of Predictive Marketing

Essentially, Predictive Marketing strives to anticipate what each customer’s next need or wish likely is, based on an in-depth understanding of his or her relationship with your business; this is often described as having a 360 view of each customer. The process embodies using a data-driven approach to analyze engagement and buying behaviours in order to help businesses understand trends and forecast future patterns.

forblog-predictivemktgAnalytical tools, such as predictive models that continue to learn from freshly acquired data, form the support base for this marketing technique. The 360 view also enables the business to segment and target customers by their engagement history with the service or product being offered, instead of by their demographics. It is particularly useful for running micro campaigns which generally yield higher ROI’s than conventional larger scale campaigns.

Predictive Marketing therefore introduces a new stage in the evolution of customer relationship management, by delivering more personalized customer experiences that boost purchase loyalty and revenues. At all stages within the customer life cycle, data-informed marketing decisions can be made which create many advantages that are key to achieving superior business results in a competitive marketplace:

  • Identify whom to reach by building a 360 view of each customer’s relationship with your business. Accurately profile buying behavior to identify the most profitable customers, and offer relevant perks to each at the right time to enhance loyalty.
  • Optimize where and how to spend your marketing dollars on a continual basis as fresh data continues to be collected. Retaining high-value customers may not always be the highest priority. Under some circumstances, it may be timely to identify medium-value customers and then provide the right incentives for them to migrate to the high-value zone.
  • Predict which campaign will yield higher returns. Evaluate marketing campaigns to predict who will respond to which campaign, and by which channel, thus increasing likelihood of responses and improving quality of future sales leads

The above capabilities merely skim the surface of possibilities regarding how predictive analytics could boost the impact of your marketing strategy. For a more in-depth view, the shortest way is to have a discovery conversation with a data science provider, in order to ask questions about network parallel computing, machine learning, and time series analysis. This will add substance to your understanding of what predictive analytics could do for your business.

Search

Related posts

Categories

Back to top