Unless there’s a psychic hiding amongst modern marketers, it’s highly unlikely that they can predict the future of marketing to the last detail. So, if marketers do not have the ability to foresee the future, how do they equip themselves for the disruption of the digital economy?

With predictive analytics, of course!

That’s right – predictive analytics is the psychic solution marketers need that can deliver everything from the results of a future campaign to insights that will allow for enhancement of customer journey. And every marketer worth their salt knows customers are the backbone of a business.

The Holy Grail of Marketing Success: Customer-Centric Business Models

Boom! Disruption has got to you and it’s here to stay. The constantly evolving, tech-driven economy has led to rising customer expectations. How are you going to combat the disruptive challenges of this ever-changing digital era?

According to a 2017 Gartner Survey in two years’ time, 81% of the respondents in marketing expect to be competing and creating their marketing strategies on the basis of customer experience. In light of this information, moving to a more customer-centric business model is clearly a smart go-to strategy to embrace disruption.

Predictive analytics can provide insights on what the customer needs and when the customer needs it−based on their clicks across your channels, previous product purchases, and content consumption−and provide it at exactly the right juncture. Have marketers hit the jackpot with predictive analytics then? Quite possibly!

So what exactly can this jackpot do for marketing? What are the problems it can solve? Read on to know!

Slice Your Pie

Your customer base consists of a diverse audience varying in age, ethnicity, geography and multiple other factors. Segmenting the customer base gives organizations the insights required to decide where to concentrate their efforts for maximum ROI and conversion rates. It also helps in targeting of marketing efforts and generating more effective strategies because at the end of the day- you can pitch all you want, but if it’s not to the right TG, then you’re not likely to get great success rates.

I’ve Got a Cookie Just for You

Sure, you can offer discounts and coupons to your customers but is it on the products they want? If not, how is it really of any use to them? Instead of generic offers, predictive analytics allows you to churn out targeted offers that not only will increase the probability of purchase but also delight your customers. Amazon’s personalized recommendations and offers are an excellent example of this strategy at work. For long-term and loyal customers, providing special offers is an age-old strategy to keeping them happy, thereby lessening the chances of customer defection.

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Amazon’s Personalized Recommendations for Repeat Buyers

Untangling the Wires of Cross-Selling

You know what would be a business disaster? Missing a great opportunity to cross-sell.

With the advent of Big Data, and AI and Machine Learning, the probability of this happening has been reduced. A segmented customer base means your cross-selling efforts can be accurately targeted with more chances of success.

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Targeted Cross-Selling

Reducing the Risk in Risky Business

Is one of your customers preparing to switch over to your competitor? Do they seem lackadaisical in their engagements with you? Are you scratching your head looking for a viable and long-lasting solution?

Predictive analytics can track customer behavior patterns and determine whether your customer base is satisfied or you’re in trouble. Take the example of the BFSI (banking, financial services and insurance) sector. Predictive analytics can identify target or segment customers based on the customers who might default based on their history of withdrawals, delayed payments, credit loans etc. This gives banks the insight on which customers might need a loan and offer interim loans on the basis of that data.

Banking marketers can also use predictive analytics to familiarize themselves with a customer’s buying habits, which helps in delivering the right products and services to them.

The need to hone marketing strategies to enhance customer experience is imperative to keep moving forward on the road to success and growth. We know data-driven marketing is the new (or not so new) sheriff in town – predictive analytics is merely another facet of what big data can offer businesses. Predictive analytics is simply put a solution that can be easily implemented and lead to more effectiveness of marketing strategies.