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Predictive marketing can be an incredibly powerful tool when used effectively. However, many marketers are not even familiar with predictive marketing strategies and how to implement them. If you are one of those marketing professionals who may need a little bit of help catching on to this new marketing trend, you have come to the right place. What is predictive marketing? How can predictive marketing benefit a company? Find out the answers to these questions and learn more about predictive marketing tactics below.
What Is It?
Predictive marketing is any form of marketing practices that use the data produced by predictive analytics to better market their products and services. The predictive analytics discipline collects data from potential customers regarding consumer behavior, web-journey and engagement. Then, this collected data allows machine learning processes to produce the most relevant marketing optimizations and recommendations as the need arises. Clearly, this is an area where artificial intelligence and machine learning can help to develop more effective marketing strategies to target consumers.
Better Organization
Predictive analytics also makes it possible to organize and segment data in a more nuanced, accurate manner. Businesses have a plethora of sources for information on sales leads and consumer preferences. Predictive marketing helps to sort this information into more sophisticated segmentation. This will allow you to gather more valuable insights into what marketing strategies would be most effective for a particular consumer or audience. That is certainly one of the benefits of segmentation analysis that you would be wise to take advantage of.
More Personalization
With predictive analytics marketing, your campaigns can provide more personalization than ever before. The more you know about your target audience, the more personalized you can make your advertisements. Strategic, personalized outreach is much more effective than overly broad ads. That is why predictive marketing results in more MQL to SQL conversions, better click through, increased close-rates and better revenues overall for business.
Less Capital Burn
Predictive marketing tactics allow marketing departments to waste less capital taking shots in the dark. Because predictive analytics allow you to know more about what advertisements will work for your target audience, you will not have to take a trial and error approach to marketing. This saves you precious resources, which you can than turn around and reinvest in more effective marketing strategies. This is a problem typically encountered in many small business advertising ideas. If your company is always pressuring you to slash your capital burn rate in half, predictive marketing can definitely help.
Increased Loyalty
If you want to keep customers coming back for more, predictive analytics tactics can help you do just that. Using predictive marketing allows you to reduce churn by identifying customers with high attrition risk and targeting ads to address their wandering eye. By allowing you to take proactive action to retain customers, you can greatly improve customer retention and brand loyalty overall. Every marketing professional knows that it costs more to find new customers than it costs to keep existing customers. Predictive marketing best practices help you keep customer retention rates high for maximum brand loyalty.
If you are always trying to improve your marketing prowess, predictive analytics is one topic you certainly want to start learning up on now. Surely, you know what marketing segmentation is, but predictive analytics marketing is one of the biggest marketing trends of recent years. Predictive analysis has led to a growing trend of businesses using predictive marketing to make marketing campaigns more personalized and more effective. Consider the advantages of predictive marketing discussed above. Then, consider whether this new marketing strategy could be efficiently implemented in your marketing department to improve business performance for your company.
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