Predictive analytics allows your brand to understand what each segment of your core audience is interested in purchasing and when they are most likely going to want to make particular purchases. Predictive analytics enables your brand to create marketing campaigns that are specifically designed to your target audience’s needs, making them more relevant to your audience and ultimately enabling your campaign to see higher response rates.
Through the use of predictive analytics you are able to reduce your marketing costs. By understanding your target audience and segmenting your target market into smaller, more manageable groups with similar interests and buying habits, you can reduce the number of messages sent out by your brand. Furthermore, by understanding when and what your customer is most likely interested in buying, you can send personalized messages rather than sending an abundance of generic messages to everyone in your database.
Predictive analytics will increase your customers’ engagement with your brand. By sending relevant messages, you target audience is more likely to not only take the time to listen or read what you have to say, but they are also more likely to respond to your call to action because you are sending them messages that relate to their personal buying preferences.
Finally, marketing’s 80/20 rule. Predictive analytics can help you realize who the top 20 percent of your target audience. Who purchases most often, who makes the larger purchases and so on. Knowing who your top 20 percent customers are allows you to target them specifically and ensures that they continue to be reoccurring customers or clients.
The benefits of predictive analytics are numerous and can ultimately increase your return on investments when executed properly to your core audience.
Print & Graphic Communications Association