Predictive analytics is a game-changer for marketers and businesses. By using data to predict future outcomes, it allows you to prepare for the future, thus equipping you with the knowledge you need to make smart business decisions.
Predictive analytics is a business intelligence technology that combines existing data to figure out patterns. This pattern-based data is then used to make predictions and prepare better for possible outcomes and risks.
It is evident that predictive analytics has plenty of benefits for businesses. One of these is improving the customer experience. Below, we see how that happens.
- Personalized, targeted marketing
When you reach the right customers or prospects with the right message at the right time on the right channel, then your marketing efforts are more likely to deliver. This is what personalized, targeted marketing is, and it is made even more effective by predictive analysis. This is because technology enables personalized marketing to be based on reliable data.
It is not impossible for businesses to know exactly what their customers want even before they arrive at the store or their website, even before the customers themselves realize that they want it. Especially when combined with technologies such as computer vision and facial recognition, predictive analytics can lead to revolutionary results.
- Predicting the needs of customers
With predictive analytics, businesses can now forecast the needs of their customers accurately as the technology allows early detection and understanding of precursors to change in the behavior of customers.
What this does is equip brands with the knowledge to tailor their message to anticipate such changes. In other words, your business will communicate with your customers and serve them with solutions even before they realize that they now have a new need.
- Reducing customer churn
Customer churn refers to the percentage of customers who were once very loyal to your brand but have stopped purchasing your products and services during a certain time frame. Many businesses are constantly looking for effective ways to reduce this percentage, and it appears that predictive analytics may just be the answer.
This is because the technology can be used to identify existing customers with a high churn risk, allowing businesses to proactively take measures to prevent this from happening.
- Faster shipping and delivery
Today, more and more customers are expecting next-day or even same-day deliveries. It can be challenging for businesses to handle these requests, but with predictive analytics, on-time arrivals can be ensured by forecasting any possible logistics and maintenance issues that could crop up during the shipping and delivery process.