Six Good Reasons To Make Use of Predictive Analytics
This is the data that helps you see into the future.
Volumes of data continue to grow. Customers can be reached (and turned away) through a continuously growing range of channels. “Blast” marketing continues to fall out of favor due to the lack of offer relevancy.
The Solution: The growth of predictive analytics helps to address all of those needs, while the technology is keeping pace with demand. There is a natural progression of more adopters, lower costs of resources, and more momentum to reach out. Whether it’s gaining better understanding of changing market dynamics, or zeroing in on the best next message for every customer in your database, predictive analytics can deliver. If you’ve been entertaining the idea of predictive analytics, here are six good reasons to get on board:
1. Make better use of collected data. When you understand how customers are likely to react in real-time, you can start making more powerful strategic shifts in spending and messaging. Don’t run from high data volume. Gather it. Focus on quality, and let predictive analytics dive deeper to help model the ongoing customers responses to your marketing activity.
2. Evolve beyond RFM (recency, frequency, monetary) models. RFM models use a lightweight predictive component since they focus on messages which will move customers from their current standing up to the most recent purchase category. The most prominent limitation is that the data is always just a step behind, so they are taking data from only the past.
Predictive analytics can do much more. Instead of only focusing on the offers that have generated past sales, you can model the behaviors and exposures which will keep customers engaged and keep them from becoming inactive.
3. You will be able to understand customers better than your competitors. According to Forbes Insights data, only 15 percent of marketers use multi-channel/multi-touch attribution data in their predictive models, or approximately one-third as many as use website data and