Predictive Marketing in 2020: All you need to know
8 October 2020
Is it possible to predict a user’s behaviour?
Predictive Marketing is used to foresee customer behaviour, to know their needs in real-time before they take any action. It harnesses Big Data to make statistical models and make predictions.
It is the future. In fact, for some of us, it’s already the present.
PREDICTIVE MARKETING: What is it?
Consumer behaviour tends to change and evolve overnight. So rather than trying to find out what consumers want, we will rather try to find out what they will want to buy in the near future.
Big data is about analysing the behaviour of large numbers of people. Online actions such as messages, transactions, GPS signals or even real-life factors like the weather may seem insignificant on a personal level but can provide huge insights when analysed on a big scale.
That’s what Predictive Marketing does. It analyses all this data and offers you precise product or service recommendations to an ultra-targeted audience…
All interactions that consumers will have on a website, a social network or an e-commerce site, for example, are recorded. All this information will then be analysed by algorithms to predict their future purchase intentions.
With these predictions, it’s much easier for you to create and apply marketing strategies that are fully personalised to consumers. This means collecting as much information as possible in advance to be as accurate and informed as possible.
What can you use it for?
Here are several examples of predictive marketing applications:
- An email campaign: Send targeted recommendations by email based on email campaigns that the consumer has already received and opened;
- Lead scoring: Know where the leads with more likelihood of conversion are coming from.
- Sales campaigns: Identify hot leads quickly and send bad quality ones to nurture.
- Making website recommendations: With predictive marketing, you can personalise the website to improve the consumer’s experience, with more tailored navigation. For example, adding product recommendations for the consumer;
- Make mobile recommendations: More and more purchases are being made using mobile phones. Predictive recommendations can be easily made with mobile applications.
WHY DO MARKETERS NEED PREDICTIVE MARKETING ANALYTICS?
Consumers are increasingly informed about products and demand a personalised experience and service. To achieve optimal results, the next generation of marketers will need predictive technology. With good predictive models, it’s possible to determine the ideal customer profile and therefore to approach the right people.
How is it used properly?
Marketers can make use of predictive analytics in a number of ways:
Improving the return on investment and therefore increasing their revenues. Consumers are more sensitive to a personalised offer and there is a greater chance of converting a prospect into a buyer. With predictive marketing, the more information we have about past purchases, the more accurate the predictions are about future purchases;
Have more loyal customers by developing the relationship between brands and customers. If they are treated individually, they will have greater recognition and remain loyal to the brands;
Assist the customer throughout the purchasing process. With the extraordinary amount of data collected, we are able to automate the purchasing processes, which in turn provides us with even more data. Customers are able to provide data themselves and in exchange will benefit from an even more personalised experience;
Build several complex sales funnels on various communication media. With predictive analytics, it’s possible to combine email and mobile messaging to provide the most complete experience possible.
HOW DOES PREDICTIVE MARKETING FIT INTO YOUR CURRENT MARKETING STRATEGY?
Now you know the benefits of predictive analytics and the impact and benefits that can bring to the world of digital marketing, but how does it apply to your current digital marketing campaigns? Well, Predictive Marketing is designed to impact all aspects of today’s marketing strategies.
- You can make personalised recommendations based on what consumers prefer, what they buy and how they buy it;
- You can know what consumers are more likely to buy and when and allocate your sales and marketing efforts towards them.
- You can improve your shopping or shelf placement, be more accurate, offer the right product at the right time and make automatic updates;
- Run real-time SMS campaigns to encourage consumers to buy the right product at the right time.
- Make recommendations for mobiles: More and more purchases are being made using mobile phones. Predictive recommendations can easily be made with mobile applications.
WHY DO MARKETERS NEED PREDICTIVE ANALYTICS?
Customers are increasingly informed about products and demand a personalised experience or service. To achieve optimal results, the next generation of marketers will need predictive technology. With good predictive marketing, it’s possible to determine the ideal customer profile and therefore approach the right people.
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