12 Dec 2015, 10:20 — 4 min read
Let's start with a proper understanding of what predictive marketing is. Multiple sources on the internet all agree that it is the application of predictive analysis in marketing strategies. Or in clearer terms, it is statistical analysis applied to available data that lets you predict what future buying trends might be.
It's very clear that is a very powerful instrument with great potential. By understanding how and why customers purchase particular products, you have the information to enable that pattern to flourish. If you know why something works, you can get it to work even better.
Consider the 5 points below when implementing a predictive marketing scheme in your strategies:
1. Business And Marketing First
Although predictive analysis is a mathematical concept, as a marketer, it is more important to know how to read the data on which the analysis is applied. This data is being used to get a better understanding of customers, current trends and other business aspects.
Therefore, focus on learning how to extract meaning from data and training staff on how to do so. It isn't enough to simply analyse the data. You've got to know what to do with it, and that takes business acumen.
2. What Are You Looking For?
That acumen will tell you why you're undertaking the analysis and what can be done with it. What is the purpose of the analysis? Are you looking to win customers or boost sales? Are you trying to figure out why a particular marketing strategy isn't working or when the best time for setting up a campaign is?
You then have to put the data to use. How can you transform the information obtained into an actionable positive outcome? How can you turn the low sales figures around with the data? This is an intensive step in the predictive analysis process and perhaps the most critical one.
3. What Are Your Data Points?
Predictive analysis does not work on guess work - that is a recipe for disaster. You can't hope to gain anything from it by simply throwing in random variables that you believe might have a role in your business positives or negatives.
A reliable result can only be obtained from pertinent data. You can acquire a lot of useful information from your social media channels. The elements of demographics are simple and ever-present data points. This step is more of an art than it is a science. You've to deduce what might play a role in whatever it is that is being analysed.
4. Targeting Customers
With the knowledge of predictive analysis in hand, you can start effecting changes in your marketing campaigns. A testing procedure must always be carried out, where you test the data learned with one group against another in which no changes have been to marketing strategies.
5. Consult Data Modelling Experts
Don't hesitate to consult an expert if you find that the whole process is a little over your head. There is no shortage of data modelling companies and experts who will tackle most of the steps for your business.
Predictive marketing lets you take what was previously intuition and run tests, telling you whether that gutfeeling was on the money or a blank. This is a game-changing tool that eliminates a lot of risk. Everything about predictive marketing has to do with cold, hard data. Mathematics does not lie. If you can successfully implement it, you'll be able to boost sales, win customers, and see a general improvement in your company's business.
Posted byAnjan Purandare
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