Over the last 10 years, marketing teams have evolved from the places where whimsical, highly influential ad campaigns are born into data-driven departments. Leaders are now also responsible for creating highly segmented and precise targeting criteria that drive performance throughout the entire organization.
The growing role of data has driven increased interest in predictive marketing, with 84% of marketers saying AI would be crucial to their marketing success in 2022.
What is Predictive Marketing?
According to Salesforce, predictive marketing involves using big data to forecast future customer behavior. Data science models can predict core marketing metrics and inform strategy to aid or assist conversion rate optimization, marketing attribution, total lifetime customer value, customer churn and retention, and upsell and cross-sell initiatives.
According to leading studies, companies are already reaping the benefits of using predictive analytics. For example, Pecan AI customers have seen the following results when using our automated, accessible predictive analytics solution:
- E-commerce: A well-known e-commerce company built and deployed a predictive upsell model within two weeks, doubling their campaign conversion rates.
- CPG: A household CPG brand was able to detect roughly 85% of churn and lower global churn by over 10%.
- Mobile gaming: A mobile gaming company was able to identify VIP customers and improve the lifetime value of their users, with an uplift in spending per user by 3.5x.
Potential Results from Predictive Marketing
With results like these, there’s little doubt that you can influence offline or online sales with predictive marketing. But the influence doesn’t end there. Predictive marketing can support and influence your marketing programs, such as:
- Creating personalized offers: Leveraging predictive marketing, teams can create more targeted ad campaigns with customized offers that align with broader cross-sell/upsell initiatives.
- Finding lookalike audiences: With predictive analytics, quickly identify VIP customers and create models to identify lookalike prospects. Then, find new audiences predicted to behave like your current VIP customer base.
- Optimizing campaigns: With predictive analytics, draw a higher volume of qualified users to your website. By optimizing your campaigns with predictive analytics, you’ll find the right users at the right time on the right channel, driving a higher level of ROI.
Contact us if you are interested in predictive marketing. Pecan AI offers AI-powered, BI-friendly predictive analytics software that solves critical business problems for revenue-driving and operations teams.