Tech moves as quickly as lightning strikes. As we continue to advance, we need to make sure we are up-to-date on the latest trends in Martech. Your company can stay ahead of the curve by upgrading your MAP and CRM. The latest trend: Predictive Marketing. According to Forbes in 2016, 49% of marketers were using predictive analytics and 40% planned to implement analytics in the future. It’s 2017, where does your company stand? See how predictive marketing and analytics can help your company in the future by checking out the benefits of predictive marketing below.
What is Predictive Marketing?
Predictive Marketing is an umbrella term and a new form of marketing. Marketers try creating a marketing plan based on large amounts of data collected on their target market. This helps marketers get a better understanding of what strategies are likely to work. It is not a full-proof strategy, but it does have merit. Let’s dig a little deeper by explaining how it works in a few simple steps:
- Step 1: Target market data is sourced manually or through marketing automation and compiled into a list.
- Step 2: Based on the results, the data is used to create a plan of action for your company.
- Step 3: The plan is injected into your marketing strategy to enhance marketing efforts to better target your ideal consumer.
- Step 4: The marketing team adds and removes current efforts based on the new marketing strategy. This last step can take months to years. Each marketing method varies in the amount of time your can see a direct impact on your target market. However, predictive analytics can help speed up the process.
Seems pretty simple, right? However, we know the real question is “How can predictive marketing and analytics help me now”? Check out the seven ways predictive analytics can help you below.
Benefits of Predictive Analytics
Predictive marketers are 2.9x more likely to report revenue growth at rates higher than the industry average and 2.1x more likely to occupy a commanding leadership position in the product/service markets they serve, according to Forbes. If predictive marketing and analytics sound interesting to you, review the benefits below, it may surprise you.
- Who’s Your Target Market – How well do you know your target market and how did your company find out who your target market is? Surveying, an outreach campaign or a competitor analysis? You want to make sure their message is reaching their target audience, so getting a second opinion never hurts. Using predictive analytics, companies can buy lists based on if the consumer’s listed fit the same need’s set your company’s products and services solve. Isn’t it great to see the bigger picture a little clearer? We think so.
- Lead Generation – Your sales team wants Sales Qualified Leads (SQLs) to increase and your board of directors desire upward expansion. How does predictive analytics solve this solution? By making the process faster. Gone are the days of adjusting your campaign and reimagining your content several times throughout the year. Through the data harvested you can understand what your target market wants faster, which can attract new leads to your company in less time.
- Lead scoring – The results from predictive analytics are translated into lead scores from your lists. If your company already has a MAP, it can be a seamless process to understand predictive marketing compared to companies who have not established MAP into their marketing strategy. This lead score will help identify the likelihood of the lead moving through to the end of sales funnel. This gives the sales team a better insight on how to shift their lead focus and marketing team a better understanding of how to form its message to best reach your target market. Another benefit of lead scoring is marketing and sales alignment, which could be a welcome change.
- Build the Future – Predictive marketing is easier when using MAP and CRM, but over time, we will see increase in feature upgrades with predictive analytics built in to these systems. Some companies have already implemented these changes, but the amount will only increase over time. So buckle up, the change in marketing technology will be an exciting and bumpy ride.
- Reduce Costs – How can paying for a service be less expensive? It’s actually simpler than you think, the pros outweigh the cons. How many marketing dollars have you seen spent in the past with little-to-nothing to show its impact on ROI to shareholders? Predictive analytics allows you to track your efforts through your marketing automation and see the ROI and overall change to your bottom line. The same can be done through integrating tools such as Oktopost, a social media management tool, where campaign dollars and engagement can be easily tracked. Now that’s a marketer’s dream.
- Exceed Expectations – If you’re reading this blog, you’re an insightful marketer. And we all know that insightful marketers don’t just like to meet expectations, but exceed them. Marketers that currently use predictive analytics have reported going above and beyond their company’s expectations. Who doesn’t want that?
- Work Smarter, Not Harder – Let’s face it, consumer buying patterns are complex and your target market is no different. Tracking your customer through the buyer’s journey can help, however, predictive analytics can be a helpful aid in this process. By seeing what content your average consumer is most attracted to prior to the introduction call can make all the difference.
Ride the Wave of Innovation
Now or later, the trend appears that the modern marketer will have to integrate predictive analytics into their marketing strategy. So why not be ahead of your competitors? We know all good things take time. However, in the long run, it’s not only the best solution for you, but for your growing company.