Many say the very nature of marketing involves a form of science. that it mean marketing is predictable? Predictive analytics and all sorts of predictions are quite trendy in marketing and in business in general. Many companies are trying to predict and understand the future of a company by using patterns, data and techniques.
While marketing is the core of sales for every business and organization, marketing efforts do not start off with numerous sales. In fact, many companies lose money in their effort to improve on their marketing. At some point, Every business strives to reach a state of predictability. When a company reaches a state of predictability, It can drive sustainable growth from knowing exactly how much money to invest to generate a precise amount of new revenue.
So what is predictive marketing? It is a marketing technique that involves using data analytics to determine which marketing strategies and actions have the highest probability of succeeding. It has a place in the marketing technology landscape, as companies make use of general business data, marketing and sales activity data, and mathematical algorithms to match patterns and determine the best-fit criteria for their next marketing actions. Companies that utilize this strategy strive to make data-driven decisions to yield better results
The Rise of Predictive Marketing
Three main factors have led to the boom in predictive marketing including the massive amounts of data marketers can access from all available sources, access to data in real-time, and the introduction of cloud computing that provides Big Data technologies. Now that Marketing Tech tools are more accurate and sophisticated, marketers have access to better results and can measure advertising and audience sources to create campaigns with predictable responses. However, there are challenges with regards to seemingly predictive marketing.
Challenges with Predictive Marketing
One of the frustrating challenges with this approach is that it may not live up to some executives’ and marketers’ expectations for fully-automated analytics. many marketers and business owners looking for results face this common challenge. and this as a result of the fact that marketers fail to marry the art and science of marketing. Humans remain smarter than computers. That is not to say that there are not advantages. let us look at the benefits of predictive marketing.
Benefits of Predictive marketing
Predictive marketing tools have assisted companies in using their data specifically to make data-based predictions about how their customers will make purchases when they will make purchases, and how much they will spend based on their previous behaviours. As the tools continue to evolve, companies are able to utilize automated marketing systems that build models, deploy lead scores, and gain insights in real-time.
There are several advantages of having such insight into consumers and their behaviours including improving customer engagement and increasing revenue, gaining more sophisticated segmentation of data, identifying campaigns and actions that are better targeted to customers, better-utilizing marketing budgets, and improving lead scoring.
Overall, it takes much of the guesswork out of marketing and the benefits of predictive marketing empower companies to conduct more accurate forecasting.
It also puts marketers in a better position to see what’s around the bend and perform better in terms of upselling, making the next-best offers, determining long-term profitability, and being prepared for shifts in market conditions.
Would you like to take advantage of predictive marketing? check out our next article on predictive marketing tools. and their uses.