And that’s all for good! I mean today’s business models revolves around cost effectiveness, resource optimization and intelligent marketing. Gone are the days when a single marketing activity was carried out to appeal mass. Look around you, everything is driven by data, and truly the “The Throne demands the Data” (Well that’s result of watching too much of Games of Thrones!!) Predictive Analytics is an indispensable tool for today’s marketer.
Now what is this predictive analysis and why does it matter?
In general terms, predictive analysis is a process to forecast future incidents with the help of historical data, statically trend analysis and mathematical data modeling. Sounds too geeky? Well, in marketing language let’s say, predictive analysis is an aid to help you gauge complete performance marketing helping you with high ROI and effective resource optimization. In digital marketing too predictive analysis is taking a centre stage. More now with the increasing exposure of AI machine learning and big data, predictive analysis is shaping up decision making a cake walk activity. So, start asking the right questions based on the data resources of your business. Fundamentally all predictive analysis uses a model to achieve the objective, like this one:
How this predictive analytics will help you in digital marketing?
While there are many more points to cover, with this limited space, I am putting forward the top 3 usability of predictive analytics in digital marketing.
- Customer Acquisition and retention: Predictive analytics is a hands-on tool that a marketer must rely on for customer acquisition and retention. The applicability is far-fetched, for example it can identify responding prospect, understand their buying intention, rate them as per their segments, create scalable acquisition and retention plan . With predictive analytics at your side, you can identify customers who are likely to churn with the entire why’s and when. Therefore, as a marketer you have huge information that a human mind cannot predict alone. You can make better retention campaigns and save a lot of resources in acquiring new ones!
- Smart Automation and reporting: Basic analytics offer valuable business insight to the decision makers; however Predictive analytics goes beyond mere data reporting. It recognizes every aspect in respective funnels or segments rate them according to the viability and even can chalk out an appropriate action. In fact with predictive analytics the automation and rules just become comfortable and dependable with customized set of triggers and approaches.
- Actionable business Intelligence: The single idea of someone at your side forecasting business turnaround, customer return-ship, resource optimization and even keeping an eye at your competitors is fascinatingly appealing. For example, Amazon and Netflix use predictive analysis to understand customer choices and preferences by looking into their historic movie or purchase patterns. They then come up with useful suggestions.
According to me, Predictive Analytics in Digital Marketing can be a powerful instrument to create an exhaustive Customer Profile.
Tools to consider: IBM , SAP , Oracle and SAS predictive analytics tools are quite a handful ones.
Whatever your industry or domain is , with predictive analytics at your side, the outcome is almost same. You will be more capable, faster, efficient and always ready with a ‘plan’. Let me know how you use your analytics. Till then, happy marketing!
Sayani is an unconventional (in an interesting way) digital marketing consultant. She has worked with more than 100 MNC clients and start ups globally. Being an early entrant in the domain, her insight and knowledge is firm and fundamentally strong. Her methods and strategies have always been appreciated in the industry. She is also associated as a visiting faculty teaching with various education institutions sharing her knowledge and educating future marketers. She is currently staying in Kolkata and currently working as Digital Marketer for a Rural Digital Initiative.
Linkedin Profile: https://www.linkedin.com/in/sayanighosh/
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