Predictive marketing uses predictive analytics to help marketer better understand their customers and offer them a unique offer at the right time. At its core, predictive analytics help marketers:
- Understand trends & relationships – between myriad variables, including behavior, products, pricing, channels, timing, location, and more
- Predict propensity – understand the likelihood of a specific outcome in the future
- Identify new audience clusters – segment people based on a set of common attributes
- Communicate more effectively & personally – deliver the message or offer that will resonate most effectively with that individual at a given moment in time, based on their needs and interests
However, many companies are still weighing whether they should invest in predictive analytics, so we’ve compiled three compelling reasons for making predictive analytics a key marketing initiative for your organization in the near future.
- You’ll outpace other companies, including even your competition.
According to Aberdeen Group, companies that employ predictive analytics experience nearly 2x the lift from marketing campaigns as organizations that do not use this technology. Differentiate yourself from the pack and get better results by incorporating predictive analytics into your toolkit.
- You’ll achieve better campaign results.
This seems like a no-brainer, but if you need some proof that predictive analytics impacts campaign results, Aberdeen Group also reported that companies employing predictive analytics say their click-through rates (CTR) are 76% higher and report they are twice as likely to be able to identify high-value customers – and recommend the right offer to them.
- You’ll gain return on your investment.
Every dollar invested in predictive analytics, business intelligence, and performance management products generates a gain of $10.66, or an ROI of more than 1,000%, according to Nucleus Research. So not only will your campaigns be more effective, your investment in predictive analytics itself will deliver returns. That’s hard to argue with.
Boxever partners with travel companies to help them apply predictive marketing to their engagements with prospective travelers and current customers. You can learn more about how these types of companies approach predictive marketing by reading our ebook or downloading the infographic.