With the digital revolution, every marketer is putting lots of effort in digital marketing to exploit its benefits. Advancement in technology provides innovative solutions to marketers to improve their performance and deliver delightful customer service and experience.
Increased user base on digital channels, growing awareness of big data and implementation of data analytics are elevating marketing efforts and its impact on bottom-line. Now, smart marketer use predictive analytics to their grow business.
Why Predictive Analytics?
Before knowing the reason why to use predictive analytics in marketing, let's have charity on what actually predictive analytics is?
Predictive analytics is the process of analyzing huge data set to establish cause and effect relationship, build correlation, uncover hidden patterns and use these valuable insights to predict the future outcome.
Predictive analytics uses data modelling, statistical & analytical tools and cognitive ability to take decisions.
A smart marketer with visionary mind can't ignore predictive analytics because it provide real time information about customer who is happy and satisfied with company's offerings, customer who is looking for alternatives and may switch to competitors, high end value providing customer, changing needs of the customer and many more.
How Predictive Analytics contribute towards growth of business
- Better understanding of consumers behaviors and trends
Now a data big data provides detail of every minute interactions with customer at different points. This helps in better understanding of consumer behavior and patterns based on these patterns and past trends, predictive analytics provides insights about what could be possible response of customer on particular marketing effort of companies.
- More accurate prediction of consumer behavior
With huge amount of structured and unlabeled data and analytical model, it becomes possible for a marketer to predict future behavior and reactions of consumer on company's offerings and services. The strong predictive model will result in greater accuracy in predictions. Better understanding will ensure the focused marketing towards high end valued customer and estimate the future outcome and the bottom-line.
- Provide Scope for innovation
Predictive analytics provide insights about the factors causing dissatisfaction. The dissatisfaction among customers provides opportunity to think about some innovation in products and offerings or improvement in processes or service delivery system. Understanding the diversified customer needs result in more focused approach to target your customer and identify different untapped segments or area.
- Increase customer loyalty base
Predictive analytics provide real time information about customer who may be thinking to switch to competitors at right time. This helps market to take initiative or came up with some innovative solution to solve customer grievances. This proactive approach will reduce churn rate and improve customer loyalty by providing solutions at rights time. Also, research shows that acquiring a new customer is costlier than retaining the existing one. The whole process will save overall cost of making customer happy and satisfied.
- Improved effectiveness of marketing efforts
Predictive analytics helps marketer to keep a track on the performance of marketing team. Critical evaluation of data help to identify the gap of actual and standard performance. It also helps in fixing up accountability of a particular team in case of failure. Using predictive analytics, marketing manager can control behavior and action of his team member and improve the effectiveness of their efforts.
So, implementation of predictive analytics in marketing effort will provide scope for improvement, opportunity for growth and more accurate estimation of future outcomes. One of the major difficulty is to gather more structured data and build strong predictive model, but organizations are trying to build that intellectual capability to leverage its benefit. Thus, predictive analytics act as an engine for business growth and success.