Unlock the key to customer conversion with predictive analytics
Ever wonder how companies such as Amazon and Netflix predict what products and shows you’re likely to view or purchase next? The key to this magical mind-reading talent is the marketing science discipline called Predictive Analytics!
Predictive Analytics are statistical methods for identifying patterns and correlations in large datasets, and building models to predict future behavior with a measurable degree of certainty.
Machine Learning & Predictive Analytics Reveal Valuable Insight
Increasingly, Predictive Analytics are being applied in tandem with machine learning and big data to uncover patterns that might not be obvious to the human eye, and to produce useful predictive models across many industries and applications.
One of the most familiar applications is credit scoring – where a multitude of factors describing a consumer’s income, buying patterns and lifestyle are evaluated or “weighted” to produce an estimate of credit-worthiness.
Applications That Make Predictive Analytics Powerful
The tools are becoming increasingly automated and accessible to businesses of all types. Here are just a few sample applications:
- Direct Marketing: Streamline and economize your direct mail budget by sending only to the leads with the highest probability of converting.
- Customer Retention Programs: Understand the hidden factors that lead to customer churn, and intervene with ‘surprise and delight’ campaigns before they start heading for the door.
- Cross-Sell Programs: Repeat customers are your most profitable. Accurately predict and offer the products and services they’re most interested in before they even ask.
Now that we’ve pulled back the curtain, we hope you see that Predictive Analytics isn’t magic – it’s just math! And you can put it to work for your business as well.
Jun 23, 2021