What is Predictive Marketing?
What is Predictive Marketing
For any company, predictive marketing is a tool that can aid greatly in providing businesses with a huge marketing ROI and better lead generation if implemented successfully. At its most basic definition, predictive marketing is a form of analyzation that is focused on taking both current and historical consumer data and turning it into predictions on what the future holds in terms of business demand and helping a company to pinpoint exactly what a customer is going to spend their money on, as well as a wide range of other trends. Upon analyzing this data, a business has the opportunity to target customers with this information. For example, political campaigns often use predictive marketing to identify which voters respond the best to advertisements along the line of positive political flyers and tv ads. By gearing future marketing to these voters, it helps even more to land their vote.
Predictive marketing works by utilizing different techniques, such as data mining, predictive modeling and machine learning to achieve its results. Not only does predictive marketing allow businesses to assess past consumer patterns and implement them in the future, it also helps with risk assessment, as it gives businesses the ability to see what might have gone wrong in the past and plan accordingly by eliminating those marketing risks. When marketing the services or products your company provides, predictive marketing can allow you to plan your marketing around ideas that will benefit your company greatly in the long run.
How Predictive Marketing can Assist with Better Lead Generation
Lead Generation basically refers to the practice of gaining the interest of the consumer for your product or service. Lead generation can oftentimes be difficult and time consuming. Some of the most common lead generation methods include e-mail, search engine marketing, webinars and TV advertising. By using lead generation correctly, it’s possible that a large amount of a businesses’ overall revenue will come from those exact methods. However, a person won’t become interested in spending their money on a product if the product being advertised doesn’t hold their interest whatsoever. This is precisely where predictive marketing can bolster your lead generation efforts tremendously.
Predictive marketing is geared almost exclusively towards helping with lead generation. For example, let’s consider that there are 2 forms of lead generation, one without predictive marketing and one with. Both of these methods will be advertising a summer dress sale taking place over the weekend towards 100,000 customers of a clothing store. Without predictive marketing, this company may decide to send out a single e-mail advert to 100,000 random people that have simply shopped at their store in the past. However, any number of these people could be male or merely someone not interested in buying a dress. With predictive marketing, this company could use the same advert, but send it to those they found had bought a dress at their store in the past and may be in the market to do so again, thus increasing the percentage of those 100,000 that may decide to shop during the sale, aiding greatly in increasing overall revenue. All of this is possible with predictive marketing.
Predictive marketing mines such company and consumer data as marketing automation data, company income and revenue, social media activity, credit history, news articles and other sources. From this data, your business can see what a person or prospective client has bought in the past and what might have been going on in their lives at the time. This information can then be used to identify certain signals in the future that this person might be looking to purchase once again.
While one such analysis is of little use, hundreds and thousands of these small indicators could be put to use to provide much better sales than without predictive marketing. In essence, lead generation is typically only used with marketing automation data, while predictive marketing combines this with a huge amount of other variables mentioned previously. At the very least, your business will be able to utilize more specific and timely lead generation methods with predictive marketing than if you were simply relying on the old standby.