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What is Predictive Analytics?
Predictive Analytics is one of the branches of data mining which can be used to make predictions about future events which are relatively unknown. Predictive Analytics uses a combination of techniques drawn from statistics, data mining, machine learning, modelling and artificial intelligence in order to make more accurate records of current data for a more precise prediction of future trends.
The combination of techniques used in predictive analytics also brings together information technology, management and the modelling business process to aid in predictions. All existing patterns in transactional and historical data can be utilised to identify potential opportunities or risks in the future.
Predictive Analytics and CustomersUsing the advanced systematic process of predictive analytics, any business can easily predict the next move of their customer and act on it, without having to lift a finger. Businesses don't have to worry about pouring out all their resources into semi-effective marketing campaigns which do not satisfy or generate a positive Return on Investment (ROI). The digital age has given us the power to take “customer targeting” to a whole new level. This will direct any relevant content to the projections which are open to the purchase of your products and services, automatically.
When you leverage any such data, it empowers your business and allows you to track “digital body language”, which is one of the key components for a successful digital marketing campaign to take place. You are able to use entities such as hashtags, downloads, open rates, web visits, clicks and consumer purchase behaviour in order to predict the hottest lead in your arsenal and how to build upon it.
According to Forbes International, predictive marketers are almost 3 times more likely to report a positive revenue growth with a higher rate, when compared to the industry average. Predictive marketers are also 2.1 times more likely to have a commanding leadership position in all the products and services markets that they serve.
Many people are also aware of the importance that data collection has in bringing in more leads for a sale. However, this process can be quite a headache if you do not possess the right tools for the task. The good news is, you will not need any scientific marketer and you will not need to spend days on measuring the complex algorithms to campaign your product effectively. Marketing automation platforms are able to manage everything from the tens of hundreds to tens of thousands of unseen prospective customers who are visiting your website each day, in the most efficient manner possible. They are also able to analyse the necessary online landscape required to predict, locate and target the entire sale worthy leads.
With automated targeting, it is definitely possible to take your marketing to the next level by predicting accurate results in order to target and generate a much higher conversion rate and return on investment.
Current student in the Master of Marketing program at the University of Sydney Business School