What is predictive analytics and how do you use it? Is this an accurate representation of your Google search history in recent times? If so, we don’t blame you. You may be used to leveraging data to make informed marketing decisions, but things are about to advance a whole lot more thanks to predictive analytics.
Originally, everything started with MMM (media mix modeling). Essentially, this allowed marketers to learn the impact of individual campaigns on the sales figure on the profit and loss statement. By learning this information, businesses could improve their campaigns and make future efforts more successful.
Then, technology advanced once again and we could suddenly personalize our approach for each customer. For example, you might have used attribution models to improve your knowledge of the customer journey.
Now, after several more leaps forward in the niche, we’re welcoming a brand-new solution in predictive analytics.
What’s Predictive Analytics?
One big problem that businesses face these days is the availability of information for consumers. Within seconds, they can read online reviews, find competitors, and place an order. While small, local businesses previously had the attention of the local community, this same community is now ordering next-day delivery on marketplaces like Amazon.
Rather than throwing in the towel and giving up, this simply means that you need to get smarter with your marketing efforts. Often, businesses confuse this for spending more money. Instead, it’s about spending your marketing dollars more wisely, and you can achieve this with predictive analytics.
Using machine learning, artificial intelligence, and other forms of modern technology, predictive analytics can help businesses to understand existing consumer trends as well as possible future trends. By predicting changes in the market, you can account for this in all marketing planning.
Machine learning and AI analyze historical data and lots of other information to make predictions about future consumer behavior and other topics. That’s right - you’re now able to get advanced warnings of consumer shifts, something that business owners have been dreaming about for many decades.
Measurement Models
When dealing with predictive analytics, you’ll find three models: propensity models, cluster models, and recommendations filtering. Essentially, propensity models determine the likelihood of a consumer to convert, take advantage of an offer, or perform another action. Meanwhile, cluster models are designed to segment audiences based on past purchases, demographic data, and brand engagement.
Finally, recommendations filtering spots new sales opportunities by assessing purchase history and various other pieces of data. By combining the three models, businesses are always acting on the best information and boast a dynamic and successful marketing strategy. In business terms, this means lots of conversions, a positive ROI, and profit.
Uses of Predictive Analytics
How can businesses use the three models above? How can they implement predictive analytics? Here are just some of the uses!
Qualify and Rank Leads
Firstly, do you have endless lists of leads? If you’re like most businesses, you have no idea where to start and worry about missing easy conversions. Thankfully, today’s lead scoring tools are far more effective than pulling names out of a hat. By considering consumer behavior, marketers can score leads and focus on those closest to conversion.
Ultimately, you determine how likely each lead is to act and this means that marketing and sales teams can focus on the right people. Meanwhile, those who are still far from purchasing get the right content. Either way, you prevent wastage with your budget and optimize the marketing process.
Analyze Consumer Behavior
As mentioned previously, this is where much of the magic happens because you’re learning about how consumer trends, patterns, and behaviors could shift. While competitors are reacting to changes, you’re getting an advanced warning and can plan content strategies accordingly. Now, you’re taking ‘right place, right time, right content’ to the next level.
It’s easy to get blinded by the revenue and ROI figures, but this also means that you improve the customer experience. If you’re already ahead of the curve, loyalty for your brand will only improve.
Improve Resource Utilization
We’re going to assume that you’ve got limited resources this year (although you might look at brands with envy when they have almost unlimited budgets!). Therefore, you need to be careful with every single marketing dollar that you spend, especially in this post-pandemic environment.
The more insights you generate through predictive analytics, the easier it becomes to make the right decisions. You’re aware of potential changes in consumer behavior, the best leads, and even how to retain customers.
Keep Customers Happy
Information leads to better decisions, better decisions lead to effective content and a higher standard of service, and both of these combine to keep all customers happy. When a customer is happy, they have no reason to explore the market. With predictive analytics, you’re always learning about the most effective marketing strategies, up-sell and cross-sell opportunities, and much more.
Implementing Predictive Analytics
If you’re in dreamland right now just thinking about how predictive analytics can help your business, let’s learn how you can get started with the technology before you get too ahead of yourself. We’re going to finish with some advice for those who have been buoyed by the prospect of predictive analytics in this article!
Unified Marketing Measurement
If predictive analytics is to work, you need to start measuring and start measuring as much as possible right now. One of the most important components of predictive analytics is historical data, so you’ll struggle without it. Track engagement as people move through the sales funnel, interact with ad campaigns, and perform other actions.
Once you’re gathering data, this is all plugged into the predictive analytics tool and your predictions will benefit on the other side. With unified marketing measurement, all data is gathered in one place whether it regards offline engagements, online engagements, market trends, or consumer behavior.
Machine Learning and AI
By now, everybody should be over the fears that technology like AI and machine learning will take the jobs of marketing professionals. Rather than the enemy, we should see technology like this as our best friend. Every day, marketers go home having ticked three items off the to-do list and having about 187 things left on it. Why not make your life easier by utilizing machine learning and artificial intelligence tools?
If you’re aiming towards an efficient omnichannel strategy in 2021, you’ll need artificial intelligence and machine learning along the way. Although old-school marketers don’t like to hear it, machine learning and AI can process data much faster than any traditional system. If you don’t use this technology, you will never make decisions as quickly or effectively as the competitors.
With the right technology, you’ll generate insights in real-time and this means that you’re always acting on the latest information. Why perform everything manually when technology makes your life infinitely easier? Don’t worry, you’re still an important cog in the wheel because you put the insights into action.
Predictive Analytics Tools
Now for the good news that you’ve been waiting to hear - you’re not alone when it comes to predictive analytics. These days, the market is inundated with predictive analytics tools that promise the world. With so many options, we recommend sticking with some of the biggest and best names. For example, this includes Trapica.
As an AI-powered tool, you may have used Trapica before for its automatic ad optimization features. Today, however, we’re talking about the market research and intelligence tool. By leveraging search and social data, you get insights into your audience, the market, your brand, and even competitors.
With artificial intelligence leading the way, you learn all about consumer behaviors, how they may change in the future, and the segments and personas that make up your audience. On the website, Trapica says that it ‘connects the dots’ and this is a great summary of the tool. You get insights into your audience using both offline and online data, and the tool also highlights patterns in audience behavior. What’s more, it can also help with interest-based segmentation to aid your marketing efforts. With a head start on all trends and segments, you meet the needs of consumers more effectively than the competitors.
Speaking of which, Trapica also has competitor intelligence tools where you’ll discover their social media ad campaigns, strategies, and other critical information. Once again, everything happens in real-time so there’s no excuse for being behind the times anymore.
Fortunately, Trapica has several category expertise for granular marketing insights. If you’re in one of these niches, the tool offers even more value. The list includes:
With everything in mind, it’s surprising that you haven’t opened another tab already to research Trapica and your other predictive analytics options. Maybe you have. Either way, thank you for reading and embark on the latest and greatest marketing niche now - predictive analytics.
