Predictive analytics or advanced analytics is used in making predictions about unknown events based on valid historical and transactional data from the present. It allows businesses and enterprises to make rational decisions by analyzing the data through systematic and organized techniques rather than mere assumptions. Predictive analytics will provide you with answers to these questions:
- What was the past data?
- What is the current data?
- What will be the future data?
Earlier when technology and business processes weren’t tied together, organizations conducted sales and marketing operations based on gut instincts and raw data. The introduction of data analytics has led to the birth of precise facts and figures that drive business decisions. By processing the past data trends and real-time data into appropriate insights, organizations can definitely enhance their functionality and performance.
A powerful mix of predictive analytics with CRM
Today many businesses adopt technology infrastructure to collect, maintain and analyze huge chunks of data. With this huge transformation in technology, CRM software can manage a large data repository of information and by leveraging that data, the customer relationships can surely be improved. Predictive analytics is pioneering the way to present deeper insightful data into customer behavior.
Predictive analytics acquires data and makes possible predictions based on those data which help forecast the future behavior of potential and existing customers. This evolution in today’s technological era can benefit businesses in several ways.
Most of the big companies today rely on predictive analytics to personalize and broaden their marketing campaigns. Increasing customer reach and engagement is one way of handling and utilizing real-time data which helps create contextual communication that is pertinent to the customers.
Predictive analytics transformation
Predictive analytics have transformed CRM which helped marketers understand how consumers behave in different scenarios.
- What motivates people to buy products?
- What factors influence the purchase decision?
- How should marketers effectively leverage the data to reach out to the customers based on the predictions?
The companies need to understand the demographics of the target audience. They need to know the needs and wants of customers to create better products.Predictive analytics uses data and other quantitative techniques to generate insights which helps businesses to shape their decisions and improve their performance. With predictive analytics you can forecast the future outlook based on machine learning, statistical algorithms and artificial intelligence. Developing the right strategy based on the data predictions and tapping the right audience is the key result of predictive analytics.
How does predictive analytics transform the CRM experience?
Predictive analytics is a technology that helps companies to analyze structured and unstructured data in order to identify the current key trends that uncover certain customer behaviors. CRM solutions coupled with predictive analytics maximize the company’s revenue. Making wrong decisions based on crud data can be costly for a firm and hence it is very important to predict ‘what’ and ‘where’ that leads to business success. In addition to building customer relationships, companies must have deeper customer insights to develop a clear framework of each of the customer’s journeys. Predictive analytics helps transform the CRM and makes it a better platform for understanding the current and prospective customers.
The latest predictive analysis coupled with CRM algorithms identifies the customer interactions in social media channels and websites and provides marketers with useful data and information which help devise strategies that will work like magic with the customers. By targeting those customers, companies can expedite their marketing yields and become more profitable. Each customer will now experience targeted, personalized ads based on their profile data and buying patterns.
Predictive analytics uses unorganized raw data for identifying specific behavioral patterns among different customer segments. This helps companies target their potential customers. By taking the trends into account, we can develop a prediction score based on past behaviors. This will help businesses in selecting their customers and rounding off those who might be of risk to the company. Thus, it is going to positively impact the bottom line of the business in the long run.
Identifying the consumer trends:
Predictive analytics helps capture data from various online sources such as websites, social media, digital databases, and much more. This data provided by predictive analytics is leveraged by companies in identifying their targets and developing campaigns. Predictive analytics is very much essential for the sales and marketing teams to boost their performance.
Enhancing customer relationships:
CRM needs human assistance and interactions to track customer actions. A CRM cannot do it by itself. It requires data from outside sources. Predictive analytics helps CRM to build long-lasting customer relationships. The more you know about your customer behavior, then you are more likely to increase your sales. CRM can leverage the data from predictive analytics to enhance customer relationships and thereby increase revenue.
Predictive analytics for businesses addresses a wide range of unique problems today and companies are beginning to recognize its value. Companies are widely using predictive analytics to solve business problems. Businesses might experience misalignment if they are missing out on answers to the most important questions, say “which potential customer segment will respond best to our marketing message” and “why am I losing out on my prospective customers and how do I generate traffic and increase my conversion rate optimization.”
The predictive analytics with CRM algorithms keeps track of the customer interactions that happen on the web and provides valuable insights based on it. You can leverage such insights and tailor your offers and responses proactively. This way you can increase the level of engagement, thereby expediting the marketing yields. Predictive analytics paves way for targeted marketing by understanding the customer trends and buying behavior.
Predictive analytics with CRM gives you an overview on what content and solution a customer is actually interested in. You can use this data to tailor and recommend products to the customers. You can also take into account the past purchase history, their responses to surveys, feedback and preferences. This will help in picturising the profiles of the customer and cater to their needs individually in a more efficient fashion.
You can predict the churn rate with predictive algorithms. You will probably know if a customer is likely to cancel the orders, the subscriptions or abandon the cart. When you predict the reasons behind customers leaving, you will be able to decrease the churn and increase the retention rate. You have to figure out ways to expand the existing customer base which is a sure way to grow the business and build your revenue numbers.
Advantages of predictive analysis with CRM
- Predictive analysis helps identify the customer complaints regarding the offerings. Based on those complaints, businesses can work towards fixing those issues and improve their efficiency.
- Predictive analytics with CRM keeps track of calls and online chat requests and assists us to take action promptly.
- Predictive analysis suggests new products or features based on customer interaction.
- Sales, marketing, and customer service are integrated and aligned with the powerful mix of predictive analysis with CRM.
- Predictive analytics helps provide feedback and thus improves recommendations.
- Assists in the end-to-end aspects of the sales processes and help deliver desired results.
Predictive analytics provides a whole new meaning to sophisticated data and CRM systems can use those data to provide businesses with information to create an extraordinary marketing strategy. The combination of predictive analytics helps in the continuous monitoring of customer behavior. This will provide deeper insights for crafting the marketing campaigns, building stronger customer relationships, and aiding business growth. Businesses will realize an increase in profits when they learn to utilize the data they are collecting, in a more efficient fashion.
Rosareen Sandra J
Digital Marketing Associate at Apptivo Inc
Rosareen Sandra is a Digital Marketing Associate at Apptivo.Inc. In her current role, she writes blogs, creates content for social media, and manages marketing activities.
She holds a Ph.D. in Omni-channel marketing. She was a part of Executive development programs in IIM on ‘Strategic management’ and ‘Digital Marketing Analytics.’ She is passionate about marketing. She believes in delivering value to the customers, clients, partners, and society at large by communicating and exchanging offerings.