Predictive Marketing: What it Is & How to Leverage It
After months of working on a marketing campaign, nothing’s worse than realizing you aren’t seeing the results you expected.
Unfortunately, many of us have been there. We’ve put all of our creative effort, time, and numerous resources into a campaign that sounded like a great idea, but had nowhere near the expected ROI or engagement. Then, on top of watching our project fail, we’ve had to deal with the awkward scenario of sharing bad performance data with our teams.
No matter how hard you try, it’s impossible to know exactly how well a campaign will do before you run it. However, there’s a strategy that gets pretty close.
It’s called predictive marketing.
While predictive marketing sounds like some futuristic technology you’d only see on a show like Westworld, using data to estimate an outcome isn’t new.
Predictive marketing is fueled by predictive analytics, which dates back to the 1930s. It enabled mathematicians and computers to calculate and analyze the possible successes, failures, and results of various scenarios — such as health or weather conditions.
Later, in the 1990s, when analytics tools became more available to brands, marketers at companies like eBay and Amazon began to combine marketing data with similar formulas or algorithms to predict and strategize around potential consumer behaviors, purchases, and marketing campaign performance.
Now, predictive marketing is all around us. Below are just a few common instances of it, along with explanations of how brands can leverage it.
Examples of Predictive Marketing
1. Predictive Product Suggestions
Have you ever considered buying a product, researched it, and then saw the same product — or a very similar one — in a promotion that showed up on a social media feed, in your email inbox, streaming platform, or another website’s banner? You’re not alone.
Ecommerce site algorithms regularly collect data about your product interests based on what you’ve viewed or purchased from them. Then, these algorithms use that data to predict which products you’re most likely to buy next. This data is then used in the ecommerce ad or promotion a prospect sees.
Need an example? Below is an EyeBuyDirect ad that appeared on my Facebook News Feed.
As an EyeBuyDirect customer, I’ve bought many pairs of glasses with similar styles, shapes, or patterns to the pairs seen in the ad above. To compare, here are two of my recent purchases:
If I needed new glasses, EyeBuyDirrect’s ad would be very appealing to me because it shows product offerings I’m very likely to view or buy.
Rather than presenting the same ad or product to every audience member, predictive marketing tools can help you to direct …read more
Source:: HubSpot Blog