Predictive analytics – understand your customer’s behaviour
We’ll probably never be psychics, but imagine that you could predict how your customers will react to your next marketing campaign, and how much better the results would be…
We all want to know whether a customer will buy from us, and there is a growing trend in smart businesses to use specialist applications to predict behaviour as we move to more use of automated lead scoring and grading based on data such as frequency of visit, time on page/site and the type of content they have interacted with. It’s certainly something the CDM consultants are very keen on, feel free to pick our brains!
Of course each business will have its own unique set of criteria, for instance, one of our businesses is based on searches, registrations and subscriptions. Looking at this type of data will enable you to see distinct behavioural patterns and make more accurate predictions about expected outcomes from a new service or product, or promotions you may run, such as discounts. Through a greater understanding of our data we are able to make better and more informed decisions – company wide. Using specific data findings we can implement behavioural led automated marketing based on intelligent scoring.
The aim is to appeal to the optimum audience, which means casting your marketing net to those who would benefit most from what you supply. How do you find this information out? It comes down to maths, mainly statistics, but don’t worry, if you have a hatred of numbers or don’t have a data analyst on your team, we have experts HERE who could give you the results in plain English, and show you how to predict who’s more likely to choose you above the competition. It can even help you set the price more accurately, as those who perceive to get more value from you, will need less incentive to buy.
Divide and conquer
Splitting your database into groups based on attributes that are specific to them, means that you can talk directly to each group about what it is they need, and how you can provide it. User ID will determine what stage they are in your customer life cycle, that’s one type of ‘attribute’ but using multi-variables will split the list into even further defined (and more useful) groups.
By analysing behaviours of each group, such as the length of time between interactions, you will be able to determine factors such as how long each group is likely to stay registered with you and when they might buy from you. It will also show you which groups to spend the least amount of time on. All of which is great for predicting ROI, but equally will lead you to your optimum potential customers – those who want to hear from you, they just need to go one step further. Focusing on those who you know have a genuine interest in what you can do for them will save you time, as your marketing team won’t be wasting vital resources on those who probably don’t want to know you and never will.
It’s a bit like this – you wouldn’t waste your money buying a coffee for a complete stranger who’ll just walk off with it, whereas doing business over a beverage is worth every penny and much more enjoyable.
“Fancy discussing your business needs over a coffee?”
Come and have a genuine discussion about YOUR business and let’s discover how you can attract the right audience through valuable data analysis today.