How Predictive Analytics is Changing Business

by Kelly Brickman

The term predictive analytics is not new, but due to innovations in technology it is more important than ever and is now subject to affect one’s marketing success for the future. If you have never heard of the term – predictive analytics is the practice of extracting information from data, statistical algorithms, and machine learning techniques to identify patterns and predict future outcomes and trends. In simpler terms, predictive analytics is the facilitator of big data. It gives you the power to be more effective in marketing.

More and more organizations are looking at predictive analytics to increase their competitive advantage by reaching out to the right buyers at the right moment. With the advent of big data, predictive analytics will be an order qualifier and not an order winner.

If you have big data and are looking to capitalize it with predictive analytics, here is what predictive intelligence can do for you:

Improve Customer Personas

Your CRM system only knows what information you provide about current and previous customers when giving you the information needed to create a customer persona. When paired with your CRM data, predictive analytics can give you the information you need to point out specific traits and trends your current and potential customers have.

Deliver the Right Leads

With your predictive intelligence, a predictive model can be created to deliver leads that have a higher likelihood of converting into customers. According to a case study from 6sense, clients can realize up to a 450x increase in conversions from marketing-qualified leads to sales-qualified leads.

Optimize Brand Loyalty

Understanding what your customer may want in the future gives you the edge you need to be competitive. Predictive analytics allows you to be proactive in your relationships with current customers by delivering more strategic and personalized messages. It also allows you to identify which accounts seem to have one foot out the door. It is no secret that it costs more to acquire a new customer than to keep the ones you have.

Concentrate Your Marketing Spend

Creating more impactful marketing campaigns is an easy task when you know where your buyers are. Since predictive analytics leads you to be more accurate in your targeting efforts, you can save money but still produce the same number of leads. The intelligence that predictive analysis gives you also can help you determine what events to partake in, whether it be a trade show or a conference.

Shape the Future

Predictive intelligence will provide you pain points and trends to empower your marketing and product development team to create and improve existing efforts and products. It will help your organization answer one of the most important questions: What’s next?