Top 5 Predictive Analytics Applications for Marketing
Predictive analytics according to SAS is “the use of statistical algorithms, data and machine learning techniques to identify the probability of future outcomes grounded on historical data”. Here motto is to provide a best possible assessment of what would happen in future by going beyond what has happened.
In this post I have tried to take you through some of the best marketing applications of predictive analytics.
Salesforce says with the use of data science, predictive marketing accurately predicts which marketing strategies and actions are best likely to succeed.
That is “Predictive Intelligence which drives Marketing Decisions”
Qualify and Rank Leads
Finding best match leads and prioritizing them is the basic work which if done correctly would further help sales and marketing teams to apply correct strategies. Insights generated from predictive analysis can help them to focus and nurture most profitable customers. Sales and marketing can move in a better position and would close down more easily. Small and large companies can earn a good return on investment from predictive analytics techniques involving sales data.
Predicting Customer Behavior More Precisely
For marketers, the most important thing is understanding customer – what they need, when they need and how is most important for generating business. Predictive analytics techniques guided by artificial intelligence and machine learning helps to predict future customer behavior by identifying similarities and differences customers’ past purchasing behavior to judge the probability of their future purchases. Predictive models can better guide you to anticipate customers’ behavior for better marketing strategy.
Bringing Correct Services/Products to the Market
The ever-expanding cognitive technologies of data visualization and predictive analytics are opening new doors of opportunity to companies attempting to solve complex issues. Data visualization is not just a tool which appeals to the eye but it is also used to guide, inform and inspire actions depending on customer behavior (and other business data). This helps to bring the right products and services to the customers.
Aiming the Right Customers with Right Content at Right Time
Predictive analytics is the simplest method to achieve quick response on better ROI optimizing a marketing offer. Predictive analytics users are up to twice more likely to judge high-value customers and market the correct offer as reported by Aberdeen Group. A range of predictive analytic models like response modelling, affinity analysis, churn analysis etc. are available for the same.
Using predictive analytics insights to drive marketing strategies
Some of the uses of predictive analytics in marketing include:
- Gain access to social media data
- Accessing internal structured data
- Relating behavior scoring to customer data
Predictive analytics insights can quickly help to determine whether a marketing campaign over social media would have a larger impact or whether a one through mobile is more apt for the target audience. Sentiment analysis and text analysis applied to social media data is one more example which can be used to help boost marketing campaigns and capture insights for future product creation.
Thus we can say data has become the new oil. With rapidly changing technological landscape, companies which will succeed would empower their employees to use tech-first solutions to serve their customers better.
Survey base reports claim that currently firms are spending estimated $36 billion on infrastructure and storage. This figure is expected to double by 2020. With more data, better computing capabilities and easy access to vendor tools, predictive analytics for marketing have jumped from smart to a business imperative.