You might not believe it, but the success or failure of your next marketing campaign may be determined by what someone did—or didn’t do—a year ago, ten years ago, or even longer. Predictive analytics in marketing can help you understand what people will do in the future based on what they did in the past, enabling you to make highly accurate decisions about who will engage with your content and where they’re located, giving you the competitive edge you need to seize opportunities and avoid potential disasters.
Predictive analytics has been an integral part of the business since people first started looking at the data around them. More and more organizations have turned to it in recent years as they try to predict customer behavior and future trends. In order to make the most out of predictive analytics in marketing, you’ll want to understand what it is, how it works, and how you can use it to improve your own business decisions and gain competitive advantages over other companies. This guide will take you through all of that and more, so you can make the most out of predictive analytics in marketing today!
What Is Predictive Analytics?
Predictive analytics is a process that integrates data science, advanced machine learning, and predictive analytics software to help make predictions about events that could happen in the future. The applications are endless, but they're most commonly used in marketing, where they can help predict how likely a customer will buy your product or service.
The applications are endless, but they're most commonly used in marketing, where they can help predict how likely a customer will buy your product or service.
For example, let's say you have an email list of 10,000 people who have shown interest in your services. A traditional email campaign might get 3% open rates and 2% click-through rates (ORs). But by combining this with predictive analytics, you might be able to increase these numbers significantly.
For example, you might find out which customers are more likely to purchase from you based on their demographic information, like age range and geographic location, as well as what kind of content drives them to buy. Armed with this information, you might be able to send emails containing more relevant content (either products or offers) that would resonate more with these specific customers so that they're more receptive when they do receive an email from you.
10 Ways Predictive Analytics Can Help You Achieve Your Marketing Goals
Predictive analytics can help you achieve your marketing goals in three key ways: by helping you understand your audience, by helping you better engage with that audience, and by helping you deliver relevant content to that audience. Here are ten specific ways to use predictive analytics to achieve your marketing goals.
- Make Better Decisions
Predictive analytics can help you make better decisions. For example, if you know how many customers are likely to buy a product, then you can make more efficient marketing decisions. You will have a good idea of how much money should be spent on marketing and advertising, whether or not the campaign is working, and what the return on investment will be.
It is also possible to learn how long it takes for a customer to become interested in your products by using predictive models. Furthermore, predictive analytics can be used to predict future customer behavior based on past data.
- Reduce the Risk
Predictive analytics is the utilization of data and statistical analysis to make predictions about future trends. This information can be used for various purposes, including risk management. It can also help companies with their marketing strategies by providing insights into customers' behaviors and preferences. For instance, predictive analytics can help you predict customer churn rates or which products they are likely to purchase next.
In addition, predictive analytics may provide insights into which segmented groups are likely to respond well to a particular campaign or message that you want to send out.
- Improve Compliance
One of the most important ways that predictive analytics can help you achieve your marketing goals is by improving compliance with regulatory requirements. Regulations are a critical component of any organization's compliance strategy.
However, the nature and number of regulations change from industry to industry, region to region, and even for individual businesses. By using predictive analytics, organizations can proactively identify regulatory risks and assess the potential impact on their bottom line. This proactive approach will allow organizations to create a customized compliance plan and mitigate risk before it becomes an issue.
- Track Success
One of the best uses of predictive analytics is targeting messages to specific audiences. It helps you identify who your customers are and what they care about, so you can tailor your message and offers accordingly.
For example, if you have a new product or service that appeals to parents, but there's also an opportunity for children in that audience, then you can target both age groups with different messaging.
By leveraging predictive analytics, you'll be able to understand better where your potential customer may fall on a spectrum (from introverted to extroverted) and which side will resonate more with them.
For example, if someone falls on the extroverted side, then social media platforms would be more effective for them than email marketing; conversely, if they're introverted, it might be better to focus on email marketing over social media because it allows them to control their interactions with brands.
- Increase Efficiency
Data-driven marketing is all about increasing efficiency. With predictive analytics, you can take the guesswork out of your marketing and make sure you are always putting your marketing dollars toward the right opportunities.
What is the best way to use predictive analytics in your marketing strategy? Assign a score for every customer based on their behavior and life events (number of children, marital status, etc.).
Then segment those customers into different categories (active customers, lapsed customers, potential future customers) so that when it's time to launch a campaign, you know which group needs attention most. With data integration tools like Marketo, collecting customer data from many sources like social media accounts or web browsing history becomes easier than ever before.
- Make Better Investments in People, Processes, and Technology
Predictive analytics can tell you what your customers want before they even know it. To take advantage of this opportunity, you have to be able to listen and adjust accordingly.
This is why predictive analytics is at the heart of all our data-driven marketing efforts. People generally use predictive analytics technology like Infer and AutoML, which are built on top of TensorFlow, a machine learning framework created by Google's Brain team, as well as other custom predictive models.
This process is about more than just collecting data from sources like web traffic or email engagement. It requires the ability to turn raw data into insights that will shape your future product offerings and business decisions. And that is where I see companies going wrong: They rely too much on traditional quantitative analysis, meaning using numbers alone to draw conclusions, without considering how human behavior impacts those numbers.
Instead of focusing exclusively on what happened in the past or projecting out into an unknown future, predictive analytics recognizes that everything in between—the present—is also important. It embraces patterns in human behavior, so you don't have to rely solely on guesswork or gut instinct when making important decisions.
- Improve Visibility into Key Data Points
Predictive analytics can help marketers better understand their target audience and improve the effectiveness of their marketing campaigns. As a result, you can improve your visibility into key data points such as: who is visiting your website, what content they are reading, how much time they are spending on each page, how many pages they visit each day, and which social media networks they use.
This information allows you to tailor your marketing messages and ensure that you're speaking to your customers in a way that will resonate with them.
- Monitor Trends Over Time
Trends don't last forever. Using predictive analytics, you can keep tabs on how your marketing strategy is working and make adjustments when needed. For example, if you're running a campaign that's too broad, it won't be as effective. You might also want to make changes for other reasons, like if you notice that your conversion rates are declining. When done effectively, predictive analytics can help you spot trends in your marketing efforts and make the necessary adjustments early on so that you don't have to fix what's broken down the line.
- Find Opportunity Through Data Analysis
At the heart of it, predictive analytics is all about finding opportunities through data analysis. The more data you have, the better you can predict what your target audience wants. And that's where marketers come in.
Marketers are a brand's first line of defense when it comes to engaging with potential customers and building its brand. They need to be able to seize any opportunities that arise by analyzing data and making a plan of attack. Predictive analytics can help them do just that: by providing key insights into who their target customer is and what they want, they're armed with everything they need to win over new customers and grow old ones alike.
- Strategic Planning Gives You Clarity on Which Direction To Go In
Predictive analytics is a powerful tool that can help you identify what your customers want and need. It can also show you where they're spending their time so that you can better understand the best way to market your product or service to them.
Predictive analytics has many benefits, including:
- Identifying trends in customer behavior
- Evaluating how well certain marketing tactics are performing
- Forecasting future events before they happen
- Understanding more about the needs and wants of your customer base
The sooner you start using predictive analytics, the better chance you have of achieving your marketing goals.
From this blog, we conclude that predictive analytics is an important tool for marketers, and it can help them achieve their marketing goals. I would like to summarize the key points:
- Predictive analytics will make you more informed about what your customers want.
- Predictive analytics allows you to find out how profitable customers are.
- Marketers can use predictive analytics to create a custom segmentation of customer groups.
- Predictive analytics helps companies set up efficient cross-selling and targeting strategies based on their customers' needs and preferences.
We hope that by reading this blog post, you were able to learn more about how predictive analytics can help your company meet its marketing goals.