Even though the buzz around its benefits has only started to gain momentum, predictive analytics isn’t exactly a new phenomenon. Marketers these days are making plans based on predictions derived from past performance. Leading business organizations have been using predictive analytics for quite a few years now.
There are some amazing advantages that predictive analytics has in store for your marketing efforts.
What is Predictive Analytics?
Predictive analytics involves the application of statistical algorithms, relevant data and machine learning techniques to identify probable outcomes based on historical data. The objective is to expand beyond knowing what has happened in the past and focus on what will happen in the future.
Why is Predictive Analytics the Need of the Hour?
Marketing departments are adopting predictive analytics software because it helps them to identify prospective consumers. Once these prospects are converted, a diverse range of products can be marketed to them.
With the inclusion of predictive analytics into your marketing procedures, you can determine what you want to sell to a target customer. For example, if a man buys a Giorgio Armani suit, he is more likely to invest in an Aston Martin than a Nissan. Intra-product upselling and cross-selling are outcomes of efficient predictive analytics efforts.
“The progress of big data has prompted predictive analytics to evolve. Advanced computer algorithms have made the technology of prediction more accurate and far-reaching than before,” states George McAvoy, an academic expert on IT coursework help. As of now, this trend is turning into a formidable force with a plethora of untapped potential. Marketers who don’t gear up to the changing scenario will have a hard time catching up with their competitors.
Below are a few reasons why predictive analytics should be integrated into your business processes.
1. Effective Lead Scoring
According to the experts in the field of sales and marketing, no two leads are created alike. With the help of predictive analytics, you can decipher the activities of your existing customers, and make your marketing efforts more impactful in the future.
In such a scenario, lead scoring becomes specifically important for large organizations with a growing list of lists. This process is basically a collaborative effort between marketing and sales. The method assigns a score to each lead, depending on factors which either qualify or disqualify them.
Predictive analytics takes your conventional lead scoring technique a few notches higher. It adopts a specific algorithm to determine the factors which should be incorporated and also determines the emphasis you should put on each of them. The efficacy of predictive analytics is that your software can learn automatically and make adjustments accordingly. It can record any information that consumers have in common.
2. Better Content Creation and Distribution
Let’s assume that you invest quite a bit of your marketing budget in producing quality contents.
This is because content marketing is capable of offering a substantial ROI for your company. However, there’s no point in investing a lot of money if nobody visits your website.
Under such circumstances, the content takes the blame. In reality, the culprit is an improper strategy for content distribution. With Predictive Analytics at service, marketers can resolve similar issues by evaluating the types of content that resonate with the customers.
3. Accessing the Right Consumers at the Right Time
Ideal buyer personas come off as a great benefit which allows the brands to create well-curated messages and offers.
The whole point of using predictive analytics is that the marketing teams can maintain accuracy in reaching the right buyer at the right time, with the appropriate message.
“Likelihood to purchase” is the golden opportunity which every marketer might want to leverage. Predictive analytics assists the brands to predict the purchase behavior, so that they can present relevant offers to the consumers.
Sales occur when the consumers have established a connection with the brand. The consumers are encouraged to purchase only when they feel they are being nurtured by the company. Predictive analytics can support lead nurturing by recognizing the opportune moments to present consumers with valuable information.
4. Focused Marketing Expenditures
With predictive analytics at work, determining the marketing expenses by evaluating authentic data has become common.
Predictive analytics allow marketers to have a precise overview of where their consumers are and how they should focus their marketing investments. Organizations are using predictive analytics to narrow down their marketing investments. These organizations are able to come up with more qualified leads against limited overall expenses, because less amount of guesswork is involved.
5. Guaranteed Deal Acceleration
The implementation of predictive analytics in marketing procedures indicates that the focus on consumer demand has become more important. The marketing process has amplified to include deal acceleration that facilitates effective digital engagement with consumers.
Predictive analytics appear as a top priority for marketers who are looking for appropriate tools to assist them in their job descriptions. This advanced analytics can guide marketers to nurture the suitable leads and convert sales a lot quicker.
6. Deciphering the Product Fit
As a marketer, you have to create an opportunity to address the pain points of your consumers. To cater to the requirements of the target market, you can make the most of information related to demographic, behavioral pattern, and other psychological data of your customers.
With the help of predictive analytics, you can check the features that your consumers leverage the most and keep tabs on their feedback.
A Statistical Insight into the Implementation of Predictive Analytics
With the market becoming immensely competitive, and consumers demanding more customized experience, predictive analytics is the only way forward. It is 2018, and marketers are already looking forward to data-driven insights to learn about their customers and stay ahead in the competition. The following stats are a testimony:
1. A staggering majority of businesses plans include implementing predictive analytics in their marketing strategies. Forty-nine percent of companies have adopted predictive marketing analytics. The majority of current users are upgrading or expanding their implementations, highlighting the early success and the need to maximize the technology’s potential. An additional 40% have decided on integrating predictive marketing analytics within the next year.
2. According to the research conducted by the CMO Council, 67% of marketers believe speed is one of the primary benefits of the implementation of predictive analytics in marketing. This leads to the ability to execute the campaigns more effectively.
3. According to a study conducted by Salesforce, 65% of B2B buyers are more likely to switch brands if an organization doesn’t personalize communications - thus making predictive analytics even more valuable and necessary. After all, businesses need to have a clear idea about their consumers, and this is exactly where predictive analytics comes in.
How to Implement Predictive Analytics in your Marketing Process
With predictive analytics, businesses don't need to employ a fleet of computer programmers to create predictive analytics algorithms. There are plenty of tools (like Datanyze!) to execute the analytical tasks and get the job done.
With the advent of predictive analytics, the process of marketing has been redefined. Earlier, evaluating consumer habits took weeks and weeks of deciphering spreadsheets. Today, the same task can be done in a matter of hours. The implication is simple: it is high time to rope in predictive analytics into your marketing strategies right away!
About the AuthorMore Content by Ela Lewis