Predictive marketing is the future. Its goal is to predict customer behavior, to know their needs in real time before they even take action. These predictions would be based on statistical models using Big data. Big data is all the data that concerns us such as our messages, our transactions, the weather, GPS signals … Predictive marketing aims to analyze all this data to offer precise recommendations of products or services to an ultra audience -ciblée …
Predictive Marketing: Definition
Consumer behavior tends to change and evolve suddenly. They adopt new consumption patterns overnight. So rather than trying to find out what consumers want, we are going to find out what they want to buy soon.
All the interactions that
consumers will have on a website, social network or e-commerce site by
example, will be saved. All this information will then be analyzed
by algorithms to predict their future buying intentions.
With predictions it will be much easier to create and apply fully personalized marketing strategies to consumers. This requires collecting as much information as possible upstream in order to be as precise and informed as possible. Thereafter, all consumers will receive personalized content based on their actions.
examples of predictive marketing applications
Here are several examples of applications for
- An emailing campaign: Send targeted recommendations by email based on the email campaigns that the consumer has already received, and that the consumer has opened;
- Make website recommendations: With predictive marketing, it will be possible to personalize the site to improve the consumer experience, with better navigation. For example, it will be possible to add product recommendations for the consumer;
- Make recommendations for mobiles: More and more purchases are made using mobile phones. Predictive recommendations can be easily done with mobile applications.
Why do marketers need predictive marketing technology?
Consumers are becoming more and more informed about products and are asking for a personalized experience and service. To achieve optimal results, future generations of marketers will need predictive technology. With good predictive marketing, it will be possible to determine the profile of the ideal client and therefore to approach the right people.
How to use predictive technology?
- Improve the return on investment and therefore increase their income. Consumers will be more sensitive to a personalized offer and there is a greater chance of converting a prospect into a buyer. With predictive technology, the more information we have about past purchases, the more accurate the predictions will be about future purchases;
- Having more loyal customers by developing the relationship between brands and customers. If treated individually, they will gain greater recognition and remain brand loyal;
- Assist the client throughout the purchasing process. With the extraordinary amount of data collected, we will be able to automate the purchasing process which in turn will provide us with even more data. Customers will be able to provide data themselves and benefit from an even more personalized experience;
- Build several complex sales tunnels on various communication media. With predictive analytics, you can combine email and mobile messaging to provide the most complete experience possible.
How to integrate predictive technology into daily digital marketing operations?
You now know what the advantages of predictive technology are and the impacts they will bring to the world of digital marketing, but also to the personalization of the consumer experience. It is possible to create technology that can make the right recommendations at the right time with the right consumers. Predictive marketing is designed to impact all aspects of today’s marketing strategies.
- You can make personalized recommendations based on consumer preferences, what they buy and how;
- You can improve your shopping or your shelving, be more precise, offer the right product at the right time and make automatic updates;
- Run real-time SMS campaigns to encourage conversions;
- You can make personalized promotion campaigns and thus offer discounts according to each of your customers.
Therefore, doing predictive analytics can really improve your sales results. But this will be possible only if there is enough data available. A considerable amount of data is indeed needed, a kind of critical mass for the analyzes and the actions that result from it to be relevant.
It will also be necessary to have the computing capacities and the right algorithms to properly analyze these in depth and propose the most effective actions. In addition, predictive technology is not intended to replace marketers, but to assist them in their work.
With the RGPD law, collecting user data is subject to very strict regulation. Before this, it was a bit like the Wild West and certain practices on the part of GAFA were very invasive and bordering on legality. The European Union does not welcome unrequited electronic surveillance and somehow wants to establish digital sovereignty for the citizens of the European Union.
To implement certain practices for predictive marketing, we will have to adapt to this new legislation.
The battle for Big Data has only just begun, this digital gold rush for data will be merciless.
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