How Predictive Analytics Drive A Better Marketing Strategy
Growth, insight, and increased sales. These are the simple, yet straightforward answers on why predictive analytics is important to marketers. When it comes to marketing, one of the most important aspects is to better understand your target audience and know everything there is to know about the customer journey. However, this world is big and not every consumer or customer is the same. They have all different characteristics that define their shopping patterns. Yet, with greater advancements in technology, communication, and an endless boom in big data, marketing strategies are becoming better than before.
The reason for this?
Marketing isn’t strictly about pure A/B testing alone without any valid support. Data and the use of predictive analytics technologies are helping marketing become stronger and more ‘scientific.’
How AI and Predictive Analytics Can Drive Marketing Success
There are a plethora of ways in which predictive intelligence can and has helped marketing efforts in every aspect. Just as we mentioned above, marketers are able to dig deeper into their consumer’s behaviors, which allow them to cater and customize their strategies accordingly.
While there are plenty of use cases of predictive analytics to help boost business, whether in the entertainment or healthy industries, one of the most notable cases that changed the way consumer’s purchase their items were undoubtedly Amazon.
By analyzing the customer’s past purchases, its algorithms learned to provide similar recommendations that the revolved around the consumer’s preferences. Whether it be through showing ‘related items,’ or ‘frequently bought together,’ the constant call to action and the personalized suggestion is what helped Amazon become the titan of e-commerce it is today.
For any fashion brand or retailer, knowing what your customer wants and having in-depth knowledge as to their online or even offline activity can make or break your company.
In regards to the companies and their integration of predictive intelligence, there was a
“40.38% influence in revenue after 36 months of implementation. After compiling and analyzing a year’s worth of current and historical data, however, predictive intelligence technology becomes more intuitive and is better able to detect trends and accurately predict consumers’ future behaviors, leading to increased revenue influence.”
Although this may have been in specific reference to the utilization of predictive intelligence on the web, the applications are no different from what predictive analytics solutions such as Chain of Demand provide for our retailers.
What it all boils down to is this: if the marketer is the on-field detective whose job is to understand the psychology of their target in order to ‘solve the case,’ predictive analytics is the trusted, tech partner-in-crime that does feed the facts through a quicker, more accurate process of reading the data.
In the end, just as described above, predictive analytics is a great way to help boost your marketing efforts in your company. It is “the backbone of data-driven marketing.” And in this day and age, where data floods every stream and channel of the customer’s journey, it is absolutely vital to implement an analytical approach.
How the marketer goes about creating a campaign to target their audience helps to truly influence the rising revenue of your business. The deeper insights that are obtained through various data sources, sales, and social media can effectively optimize pricing, decrease pain points, and increase gross margins.
However, while super important, this is not something that can be done simply by the marketing team or person alone. It is an enterprise-wide effort that includes participation from areas all over. The benefits of machine learning on the supply chain, and the many upsides of predictive analytics on management, design, and planning. It is only when all of these come together, can a company harness the true power of predictive analytics into their business.