Hopefully by this point, you’ve bought into the idea that predictive analytics marketing is the future and are preparing for the coming revolution. You understand that using predictive analytics is second-best only to having a crystal ball that can forecast future customer buying decisions and you are ready to start employing predictive analytics in your marketing strategy.
However, you may be unsure where to start. Sure, you know the role your data plays, but how can you actually use predictive analytics in your next marketing campaign?
This article aims to give you some actionable ways to employ predictive analytics marketing by looking at how the data can help segment customers, create targeted personas, improve marketing automation, and increase customer retention. If you know your next campaign needs to be fueled by predictive analytics, here are four ways to make it happen.
Improve Your Customer Segmentation Analysis
Segmenting customers and leads means bucketing people based on needs to determine your market fit. It is a practice that existed long before “big data” became a term in every marketer’s vocabulary, but predictive analytics gives you the opportunity to improve customer segmentation analysis in new, innovative ways that never before existed. Call it “precision division” or “radical customer segmentation” or whatever you like; the proof is in the pudding. Improve your customer segmentation analysis by:
- Compiling More Demographic (or Firmographic) Data. Dive deeper into gender, age, race, and location-based information to determine trends that can shape campaign content. Data management platforms like SmartForms are here to help.
- Insights into Psychographic Data. It’s one thing to know who your customer is; it is something completely different to know what interests and motivates him or her. Psychographic data provides that insight. Whether through surveys, focus groups, social media, or your own website analytics, psychographic data helps compose better profiles of customers.
- Robust Behavioral Data. For existing customers, behavioral data means how businesses use your platform or service. When combined with the firmographic and psychographic data, you have a true composite of your customers, which can then be segmented and eventually used to create better targeted customer personas (as will be illustrated in the next step).
Once your customer segmentation analysis has been optimized, marketers can then work to create targeted customer personas that will influence where and when you position specific marketing campaigns.
Create Precisely Targeted Customer Personas
Marketers new to the world of predictive analytics marketing may easily confuse customer segmentation and customer personas. While the two both work to group together leads and customers, their end purposes differ.
Customer segmentation works to determine where your product or service has a market fit. Who would be interested in doing business with us and why?
Customer personas answer a different, but equally important question for marketers. Where, how, and when should I target the most profitable segments in order to yield the highest conversion rates?
Predictive analytics marketing allows businesses to track historical buying behaviors for target segments to see the best channels with the highest conversions. There are a couple of inherent benefits in knowing this information:
- Better Lead Scoring. The SmartForms blog has covered the importance of lead scoring in the past, but predictive analytics marketing allows savvy marketers the opportunity to position the right offer to the right lead at the right time. With what result? When a prospect takes action in-line with his or her persona, the marketing team can quickly and efficiently get that now-converted lead over to the sales team for immediate action.
- Better Customer Experience. While targeted personas may initially appear to primarily benefit the marketing and sales teams, prospects and current customers also win by having information and offers for your business served up to them at the appropriate time through the most convenient channels. In a single word: accessibility. Accessibility to the right information at the right time, so that the customer experience becomes just as effective and efficient as the marketing and sales processes.
Customer segmentation and buyer personas are two of the most valuable aspects of predictive analytics marketing and can have a significant influence on the way you approach campaign design. The next step is automating processes.
Make Your Marketing Automation Better
Marketers have all the data they need to contact the right customer at the right time, but often still leverage only the most basic details (name, email, and sometimes location) in their campaigns to personalize the content being driven out to leads and customers.
Smart marketers are using the same data that helped determine customer segment and persona to create email campaigns targeted toward the individual. In short, use the information you have to demonstrate you understand the customer and his or her needs. That data can inform the offers you present and the content you share to show your business is aligned with your customer’s goals.
SmartForms has previously covered the perils of bad data, but a quick word of warning is still in order. Bad data can easily derail your success with predictive analytics marketing. Good data can make you easily stand out from the competition with your perceived attentiveness to detail. Bad data can make leads and customers write you off for life.
That is why using a data management solution that unifies, cleans, enriches, and activates your data to ensure you are operating with the highest quality information in your campaigns is absolutely critical.
That quality data will help you convert leads into new customers but also retain existing customers through strategic churn reduction campaigns.
Reduce Churn and Increase Brand Stickiness
Considering it costs five times more to acquire a new customer than it does to retain an existing one, reducing churn should be a primary focus of your predictive analytics marketing strategy.
Over on the ReachForce blog, a recent post detailed how big data can help to fuel brand loyalty among customers. Through the use of behavioral data, predictive analytics can inform marketers about trends in churn-risk customers and specific campaigns can be developed to target the sources of those risks.
Whether your focus is lead generation, retention or both, predictive analytics marketing can help you turn quality data into higher converting marketing campaigns. But you need to ensure you have the quality data in place first. That is where ReachForce SmartForms can help.