If you want to succeed on the internet today, you need a new approach compared to years past. The great thing about this shift is that marketers can now rely on data using predictive analytics to improve their future marketing results.
To improve your results, we want to look at some predictive analytics strategies you can use for your business.
In How to track your digital marketing efforts, we discussed that many companies do not make money straight from the internet. Instead, they get leads.
Take an auto dealership for example. The company uses the internet to find interested buyers to use the buy and price tool (and hopefully drive interested buyers to the nearest dealership).
For this strategy to work, the dealership needs to qualify the leads coming into the business. Forrester Research discusses three ways to qualify these leads.
Predictive Scoring– analyzes the actions of leads to determine how likely they are to act on your services. If a customer fills out a form asking to test drive a Honda Civic, they are probably more serious about buying a car than the person who just wants a list of the best family cars.
Identification Models– this approach explores what leads did in the past to become customers. You then use predictive analytics to spend more resources on those who follow the same customer path. You might even identify new markets based on the data.
Personalisation- Once you identify leads, you want to craft a message they appreciate. This step segments leads into specific groups to ensure the best message for each segment.
Do you know which channels perform best with your customers? Why does your product do better with one segment of the market than another? When you start answering these questions, you discover the right product for your market.
For example, our work with Bevilles Jewelry hit the spot when started to use Google Shopping. Because this paid ad platform on Google displays the brilliant jewelry offered by the company, we were able to increase enquiries and bookings for the site by 41% within 6 months. That lead to an increase in revenue of 39% over that time frame.
If you want to use this strategy for your business, look for correlations between your brand and the markets you feel could be ideal fits. As you collect more data on the behaviors and demographics of your audience, you can start connecting your product to better markets.
Your customers’ actions leave clues that can improve conversion rates. When we audited Cleanaway’s search engine marketing campaign, we discovered the highest conversion rates happened on Google between 6-8 AM in the morning.
We increased our ad spend during these hours and thus increased lead generation by 557%. That is the power of understanding market behaviors.
While the staggering updates in data and machine learning over the past few years are remarkable, you still need to interpret what the data says.
Therefore, the incoming data is nothing if your team does not spend time understanding what to do with this data.
You still need to determine what marketing metrics matter most to your firm and what to test in your campaigns.
For example, in our article on marketing metrics, we used the case of how a client might have a lifetime value of $350 for a masseuse, but was the $100 cost worth it to continue advertising on the same platforms?
Most people would argue, yes. However, what if the time to recoup that investment is one month? Is that worth it? Probably. What about six months, one year, or even a decade from now? At some point, the wait is too long for most businesses.
Therefore, you need to spend time analysing what works and does not work for your company.
Predictive analytics is a tremendous tool to use to improve your marketing results. However, you need to know how to use this tool, and understand the data to move forward.
If you are not sure you know how to accomplish this goal, then let Shout help you! Contact our team today for a free consultation today to go over the best ways to use predictive analytics for your next campaign.