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If you’re in marketing, there’s a good chance you’ve heard of the term “predictive analysis” over the last few years, but what is it? Let’s take a look at what it is and how it can help your business going forward.
What is predictive analysis?
Put simply, predictive analysis uses statistics and data from your business to predict the outcome of your future plans. It uses a mixture of machine learning and AI to predict whether your marketing efforts are going to be successful based on buying patterns and other trends within your industry. It can be used to:
- Understand and forecast customer behaviour
Predictive analysis can help you predict what customers might do next, which can help you create more personal marketing strategies. In turn, this can increase sales and customer loyalty in the future. - Identify market trends
It’s useful to know what’s coming up in the market so that you can tailor what marketing campaigns to target to certain people so that you’re spending money in the right place. A predictive analysis tool will help find trends before they hit their stride so that you can get in on them and participate. - Optimise your spending
Sometimes, your spending will depend on the time of the day, week, month or even the time of the year. For example, a company that sells seasonal fruits would use predictive analysis to save money on their marketing for the time where that product is more sought-after. - Reduce risks
Predictive analysis can also help you reduce risks when it comes to your marketing because it can find a decrease in demand for certain products and highlight the ones that would work well with what’s going on in your industry.
Why is predictive analysis important in terms of marketing?
Everything moves at the speed of light today, so if you want to stay ahead or at least on par with your competitors, you need to be ahead of the game. While you still may be able to run a successful business without predictive analysis, you’re never going to be the best of the best.
This is because customers have so many different choices. If they don’t find exactly what they want from one vendor, they’ll quickly swipe away and move to another one. Predictive analysis will tell you what that customer wants before they’ve even landed on your page, which allows you to make sure that those products are at the forefront so that you can plan your future campaigns accordingly.
What are the benefits of using predictive analysis in digital marketing?
Predictive analysis gives businesses an edge over their competitors (particularly those that aren’t using it) by allowing them to improve every step of the journey; from seeing a social media advert to checking out. For example, check out the services provided by this digital marketing agency in london to see what they can expect. Let’s take a look at that in a little more detail.
Better content distribution
Not too far in the past, marketing was simply a case of advertising what you had on offer and hoping the right people saw it. It’s shifted dramatically since then. With predictive analysis, you can choose a target audience, find out the best time to run your campaign and also which channel will get the most views.
This information isn’t just based on who your target audience is either, it’s based on their location, age, and other behaviours that might affect their buying patterns, and predictive analysis can hone in on that.
Upselling based on data
Predictive analysis can also detect potential leads for your campaigns. This means someone may have clicked on your campaign but then clicked away. It helps you find where improvements can be made and then upsell that product again to the same demographic audience.
Businesses can also use predictive analysis to target the same customers that clicked away on other channels, meaning that their products or services are always in the forefront of their minds, which can quickly convert into sales.
Develops efficient marketing strategies
Another benefising predictive analysis is that it can detect what types of content your target audifinds interesting in or spendsspend the most time on. Then, you can prioritise which pages and products you’re campaigning and how you go about it. If you take the time to focus on customer behaviours, you can maximise your ROI.
As you can see, predictive analysis is invaluable to a winning marketing strategy. So, if you haven’t already, use it to your advantage!
Disclaimer: For more interesting articles visit Business Times.
