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5 Ways to Use Predictive Analytics for Improving Marketing Performance

Author – Author – DecisionTree Analytics

Marketing has become a digital enterprise, and predictive analytics is one of its principal tools. And it has gone beyond just analyzing consumer habits. For example, Netflix uses predictive analytics to help determine which proposed programs they will produce for their “Netflix Original Programming” roster. The decision to produce the popular series “House of Cards” was decided after an analysis of the star, the director and the British version of the show. Here are the top 5 uses of predictive analytics that can be implemented for a better marketing performance:

Improve Customer Intelligence: Do you know your customer well enough? With customers interacting with a brand across multiple brands, they generate a lot of data about themselves. But does this help you in anyway? Does your database have this information? Use a predictive analytics platform to join consumer data scattered across different areas into a single platform to get an all-round picture of your customer.

Delivering High Quality Leads: All the leads that you get will be in vain if you don’t know which ones you should be pursuing, knowing it could lead to fruition. A predictive model can help score your leads by profiling your customers, combining internal data from CRM systems and combine it with data from the web and the social media. The resulting lead scores are better predictors of actual buying behavior than traditional leads.

Profile Best Customers: Do you know the profile of your best customers? Why did they purchase the product, did they respond to any marketing activity or did they take part in any promotional activity? Predictive Analytics can help you determine what are the attributes that goes into making your best customer. With the profile in hand, you will then be able to predict what the customers want and need and track the next steps they are likely to take.

Create Impactful Marketing Campaigns: Now, with the profile of the customer you are looking for, you can use predictive analytics to determine how your marketing efforts should pan out—What is the best offer or communication that you can send directly to the right consumer or use it for cross-sell/up-sell opportunities. Using analytics, you can actually create personalized campaigns that can be targeted to each prospect.

Reduce Churn & Improve Loyalty: The cost of acquiring a new customer is far higher than retaining an already existing one and hence customer retention is a key business driver. You can use analytics to predict the factors that are responsible for customer churn, grow existing relationships, and use insights to reduce attrition and improve loyalty.

The sales & marketing team can use predictive analytics to identify their target audience, what they buy, how much they spend, which product or service generate maximum curiosity/revenue etc. Overall, it results in better conversions, saves time and money and is a very cost-effective way of improving your business.