Simply put, predictive marketing refers to forecasting demand through analysis of statistical data, which can help businesses in developing solutions to manage the demand. Specialist marketing companies analyze past and present data of a company’s sales figures to help them understand customer purchase patterns. This in turn helps them develop consumer focused marketing strategies that will achieve optimum operational efficiencies. To make predictive marketing a success, you have to apply analytical tools that will measure each promotional campaign through an online medium, traditional marketing and specialty media to access effectiveness and profitability from them. You can also apply your own resources to carry out data analysis of past sales and marketing campaigns to help you develop focused strategies for branding and marketing.
Effective ways of using predictive marketing to improve business
1. Attribution of success or failure – Analysts seeking to target the same customers again will look for different concepts that can be projected about the product, which will help in measuring how each concept attracts varied customers. Ability to attribute success and failure of campaigns on particular promotional concepts will make it easier to predict consumer behaviour. Predictive analysis can help in determining when a customer will buy particular products and also in identifying which marketing strategy will be most effective in various circumstances. If businesses are able to attribute the success and failure of every marketing strategy whether it is online or offline, business planning becomes an easier task.
2. Customer prediction by targeting response – Since the time organizations started spending money on advertising their products through various media, they have always tried to predict the actual returns from their advertising efforts. If you are undertaking customized marketing strategies like email campaigns you can make it more effective by using predictive analysis to move them into groups or segments and creating focused campaigns for each group.
3. Increasing customer engagement through conversion analysis – Identify customers with varied levels of successful conversion after completion of a specific marketing campaign. This will help you to predict their behaviour and design the impact accordingly. To reduce customer breakups and retain them in long-term relationships, you have to demonstrate an understanding of their needs by aligning with their expectations. This is where predictive analysis helps in identifying early signs of customer migration from your brand so you can try an intervention marketing strategy to retain them.
4. Brand building through dynamic pricing – Dynamic pricing is a regular strategy used by firms to make money when possible which is usually during special events. It depends on the marketing team to identify demand patterns that can affect prices and can earn you the desired profits. Predictive analysis can help in gauging customer demand patterns based on past data analysis and make the right sales campaign to capture this demand. Businesses can use this opportunity to carry out their brand building process by making customer experience more personalized and effective.
5. Product recommendation based marketing strategy – To get your product recommended by online and offline retailers, you need to engage customers by making their shopping experience more attuned to their desires. These customized advertising programs increase the likelihood of converting lost customers to make a purchase. Through analytic tools and data tracking, companies can group customers together into categories with same buying histories and present products that are suited to their needs.
McAllister Marketing is a full service consumer marketing company. We work with you to uncover your competitive advantage and fine-tune your marketing strategy. Contact us, or call 250-380-2299 to learn more about how we can help grow your business through predictive marketing
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