So you’re collecting a lot of customer data, but are you using it to predict future outcomes? As a marketer, it’s more important than ever to focus on the predictive and prescriptive power of your data.
Harnessing the full potential of your data will give you the ability to create much more effective marketing across any number of different use cases.
5 Ways to Use Predictive Analytics in Marketing
While there are a variety of methods that marketers can leverage data to improve their campaigns and overall strategy, here are just five ways to use predictive analytics for marketing success:
1. Improve Customer Intelligence
Your marketing database doesn’t contain all there is to know about your customers. Use a predictive analytics platform to join customer data from across your organization – marketing, sales, finance, tech support, and product to get an all-around picture of the customer.
2. Better Profile Your Customers
Once you can access all your various data sources, use your predictive analytics platform to create profiles of your best customers. What journey do they take? How do they become loyal customers? Did they participate in a product trial, what marketing efforts did they respond to, what were the reasons they purchased the product, and so forth.
Predictive analytics can determine which of these attributes combine and correlate to turn a prospect into a customer. Once you have this profile, it’s time to use it to your advantage – predict what your prospects and customers want, need, and what they’re likely to do next.
3. Deliver Higher Quality Prospects to Sales
To up your high-velocity sales game, create a predictive model that will score your leads. Once you profile your best customers and are collecting data on your prospects’ activities, you can then predict each prospect’s propensity to buy. Focus your sales team on leads that have a higher likelihood to convert. At RapidMiner, we’ve put our own predictive lead-scoring model in place.
4. Create More Impactful Marketing Campaigns
Once you understand the customer’s journey on their path to buy, it’s time to use predictive analytics to determine the ‘next best action’ to indicate the best offer or communication to send to a given prospect — or customer, in the case of upsell/cross-sell opportunities. When you operationalize predictive models into your business applications, you can create personalized, automated responses to each prospect.
5. Reduce Churn and Optimize Loyalty
It costs more to acquire new customer than it does to keep the ones you have. Just as you can create profiles of your best customers, you can also use predictive analytics helps you to identify customers with high attrition risk. Once you are empowered with this insight, you can use it to take proactive action to retain them.
Struggling to harness the power of data and analytics? You’re certainly not alone. Learn how RapidMiner can help.