Predictive Intelligence – A Peek into The Future
What if I told you, that I could predict your customer’s purchase behavior and actions?
Better still, what if, You could predict it?
Predictive Intelligence is the answer to most of your customer attrition and engagement problems. As the name itself suggests, it is a technology that will predict the likelihood of future consequences based on hard facts and data. It may seem, like a thing of the future but predictive intelligence is rapidly being leveraged in various parts of the world and across sectors, even as you read this article.
Let’s explore the concept of Predictive Intelligence, its significance and relevance in marketing in today’s world.
What Are Predictive Analytics?
Simply speaking, predictive intelligence is the ability to predict behavior with the help of data mining, statistics and algorithms. As Salesforce aptly explains, the technology uses data science to accurately predict which marketing actions and strategies are most likely to succeed in the future and which won’t. Predictive intelligence also referred to as predictive analytics, is now actively used to improve the relevancy of marketing strategies. It is the process of accumulating data on retained and potential customers from various channels and mediums to study their behavioral patterns and core characteristics and factors that influence purchase patterns.
The data accumulated through predictive analytics plays a vital role in enhancing customer engagement, creating a personalized customer experience, devising targeted marketing campaigns and formulating marketing strategies that are designed to strike a chord with the customer’s behavioral patterns. The data is also used to forecast customer expectations and helps in bridging the gap between customer expectations and reality. Predictive scoring aids in identifying potential leads and assists in forecasting their behavior, which further helps in designing better-suited business strategies that are not just relevant but also value-driven and result-oriented.
To summarize, predictive analytics is a three-step process that includes data collection, analysis and automation to create intelligent strategies that help in predicting what customers want, even before they want it.
What Is Its Relevance in Marketing Today?
With more and more brands from across various verticals, adopting predictive analytics, it already has a widespread reach. According to Allied Market Research, predictive analytics is estimated to grow exponentially in 2021 with global predictive analytics spend estimated to reach US$35.45 billion by 2027 and growing at a CAGR of 21.9% from 2020 to 2027. Gartner’s research also stresses that 73% of CMOs said they plan to increase investment in data analytics in 2021 and years to come, the research also predicted that 80% of technology will be built on an AI foundation by 2021. A report by PR NEWSWIRE states that “The global predictive analytics market was estimated at $7.32 billion in 2019 and is expected to hit $35.45 billion by 2027.”
What is the Significance of Predictive Marketing?
- Forecasting Customer Behavior – Everyone wants to know what their customers are thinking or what will be their next move and predictive intelligence enables this. Predictive intelligence will read and analyze recurring patterns and create a model that is best suited to your customer characteristics and business practices.
- Automating and Optimizing Campaigns – It is much easier and more effective to design campaigns when you have a forecasting report at hand. Predictive intelligence helps in identifying future market trends as well as customer purchase patterns. This data can help you optimize and automate various functions for smooth and efficient execution.
- Detailed Data and Insights – One of the most resourceful and highly lucrative benefits of applying predictive analytics in marketing strategies is that it accumulates in-depth insights and data to accurately predict behavior. The data can be used to improve and redesign marketing strategies, promotional campaigns and better the overall customer experience.
- Flag Issues and Flaws in Strategies – By predicting probable actions, predictive analytics can bring attention to flaws in current strategies that may have a domino effect on future customer behavior. By adopting predictive analytics, you can rectify and modify current strategies to anticipate a better outcome.
- Helps in Improving Operations – Predictive analytics can significantly help in managing resources. The forecast model can help in predicting inventory requirements that can help in considerably smoothening out operations and executions. By automating anticipated actions, you can improve the scale of operations and management.
- Reducing the Chances of Risks – It also helps in identifying factors that may cause issues in the future. In the banking sector, predictive analytics is used to keep a record of customer’s credit scores to forecast default payments by he said, customers. In this way, predictive intelligence greatly helps in reducing risks.
- Helps with Supply Chain Management – Predictive analytics has a high possibility of becoming an inseparable part of supply chain management since it is being rapidly adopted across countries. It ensures the smooth running of the extensive process by being cost-efficient and offering high levels of accuracy.
- Enables Real-Time Action – A good predictive analytics platform can empower you to offer relevant services and products at the right time and at the right place to your audience. It makes targeted marketing more effective by communicating the right message in the right tonality and sentiment to the customers.
How Can You Optimally Utilize Predictive Analytics For Your Marketing Requirements?
- For Loyalty Solutions – Loyalty solutions can be aptly designed and executed with the help of dynamic platforms such as Annex Cloud. Predictive intelligence is built into Annex Cloud’s Loyalty Experience Platform and can help companies stay ahead of the curve and anticipate what their customers will be asking for. The loyalty engine leverages and analyzes data dynamically.
- For Supply Chain Management – Platforms like Halo are specifically designed for the supply chain management. It is entirely cloud-based and user-friendly software which makes accessing data from anywhere at anytime convenient and hassle-free.
- For Tactical Reasoning – Statistica’s decisioning platform uses predictive intelligence to help make tactical business decisions that are based on hard facts. By tracking your business pattern and accumulated customer data, this platform can help you make calculated business decisions to maximize profits and minimize risks.