Predictive Marketing – The Future is Now!
Predict. Personalize. Perform.
In today’s competitive world, marketers need to find the right customers who will contribute to revenue and help them grow their business. Customers are exposed to a wide variety of ads throughout the day – phone, tv, newspaper, laptop, billboards, magazines etc. Only a certain number of the customers are “in-market” to buy any specific product. They are in-market either because of genuine need or demand being created by quality ads which educate them about a certain need. Historically, marketers have used all forms of media to communicate their message to users.
In today’s digital era, customers are able to compare products and services within minutes on the web. Every second, billions of users across the world browse through the internet visiting ecommerce, banks, insurance, airlines, music, news and other types of websites and apps. Every visit is a sign – either positive or negative – of customer intent. Marketers should constantly ask themselves the following questions:
- Which customer will buy and when
- What is the best channel(s) to communicate
- What is the right message
- Should an offer/discount be provided
These questions are the fundamental tenets of the new age of marketing called “Predictive Marketing”.
What is Predictive Marketing?
The Marketing Tech Blog defines Predictive Marketing as “the practice of extracting information from existing customer datasets to determine a pattern and predict future outcomes and trends”
Intelligent Demand says Predictive Marketing means “using data science to make smarter marketing decisions by predicting which marketing actions are more likely to succeed, and which are more likely to fail”.
Therefore we could safely say Predictive Marketing is the science of using data to predict actions of users which are more likely to translate into revenue and act upon them through the right marketing channels.
5 Steps of Predictive Marketing
- Understands trends, patterns and relationships in user data
- Define goal: This varies for different industries – ‘Purchase’ for Ecommerce and Airlines, ‘Leads’ for Banks and Insurance companies, ‘Buy/Sell’ for Trading companies, etc.
- Calculate a score for each user to predict who is more likely to buy and who isn’t
- Prioritize marketing for users with high score
- Personalize ads with relevant messaging
Predictive Marketing at Vizury
Vizury follows a method of Prediction -> Personalization -> Performance
- Data that Vizury has
- Data that Vizury gets on a daily basis
- How is data analyzed: Models, Algorithms
- How is marketing data used : What marketing responses and their patterns used
- What is the end goal: purchase, leads, registration, visits
Here is a simple flowchart of how Vizury executes predictive marketing:
Vizury’s predictive marketing capability is used by marketers across Ecommerce, Airlines, Banking and Insurance verticals.
For each of these verticals, Vizury follows the steps mentioned above with clear goals. We PREDICT who will buy, PERSONALIZE the marketing message on the right marketing channel and achieve the PERFORMANCE (RoI) which we set out for.
It is important to acknowledge the fact that Predictive Marketing is an ongoing process. Data hungry systems will require a decent volume of data to study patterns and learn. Therefore, give your systems/platform time to learn.
In the following articles, lets talk about specific use cases for Banking, Insurance and Airlines verticals.