What is Predictive Marketing?
Imagine having the ability to determine exactly which products or services your customers will want in the future – that’s Predictive Marketing. Going with gut feelings, educated guesses and traditional marketing metrics are not enough. In today’s highly competitive environment, where the landscape is constantly shifting, making accurate predictions and responding accordingly to customer demands are more important than ever.
Predictive marketing is the process of using data mining and statistical techniques to predict future demand. There are various different predictive models, but the generally these models leverage historical data to identify patterns or trends, in which can be applied to the target datasets to identify customers that ‘fit’ best the patterns and profiles of historical data. Once the best records are identified, marketers can optimize their activities based on the highest propensity target audiences.
Predictive models along with customer and market data, used in a test and learn approach can be used to optimize your marketing programs. Predictive marketing can help marketers in the following ways:
- Identify the customers and prospects who are most likely to buy your product
- Attract new customers cost effectively
- Better target an audience through market segmentation
- Customize messaging to individual customers and prospects to increase response
- Retain a higher percentage of customers
- Accurately track and analyze the results of marketing programs, so you can measure ROI
- Successfully introduce new products
- Rapidly optimize your marketing programs
Today these powerful tools have become greatly simplified and easier to use. Many predictive analytics tools have intuitive interfaces with graphical drag and drop capabilities that allow users to quickly develop, train, and deploy propensity models. Stop second guessing yourself, leverage predictive analytics to help better target, personalize and engage with your audiences.