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.
Analytical 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:
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.