Your Campaign Data and the Future

Are You Using Predictive Analytics in Your Company?

Are You Using Predictive Analytics in Your Company?

Technology has changed the way marketers reach their target audience. Communication is faster and conversations are being developed and used for quantitative/qualitative analysis. While understanding real time data is very important, marketers must use foresight to study market trends in order to understand their target audience better and increase a campaigns reach.  Predictive Analytics is a broad term describing a variety of statistical and analytical techniques used to develop models that predict future events or behaviors. Marketers can pin point trends to increase efficiency, which will save money and maximize the campaign’s budget. IBM said it best, “Predictive analytics gives you the knowledge to predict…and the power to act.”

The speed of technology forces organizations to look and think ahead. Marketers participate in data mining in order to identify trends, patterns, and relationships amongst the gathered data. For example after the launch of a new loyalty program, company X will analyze the data to reveal consumer psychographics but also as a method to foresee changes of that target audience. Although the customer may have purchased the product, predictive analysis goes a step further to help companies understand what made the customer make that purchase and is there a high chance for return.  Not only will marketers understand why, predictive analysis can also answer the questions what’s next and what can we do about it? Instead of offering the same discount in the loyalty program, company X can analyze the information and determine if such an offer should be continued even though the customer just purchased the product. Rather than relying on intuition when pricing products, maintaining inventory or hiring talent, managers are using data, analysis and systematic reasoning to improve efficiency, reduce risk and increase profits. Predictive analysis benefits more than just the marketing department but also sales, business operations, and financials.

The increase in predictive analysis has also resulted in the growth of intuitive software systems designed to provide organizations with the technological framework to integrate into marketing operations. Two industry leaders are IBM SPSS and SAS. Both products have become industry leaders due to their vast technological capabilities that can be tailored to industries and specific organizations.

The Future of Predictive Software

Companies are obtaining vast amounts of information at very quick speeds from multiple devices. Data analytics management has become virtually impossible to manage without a CRM system. Therefore, analyzing the information effectively will require systems that can compute a large magnitude of information. The complexity of the incoming data has also shifted. Social marketing goes beyond general consumer demographics. When it comes to social media, predictive analysis can be used to assess how customers respond via social media and model what behavior might occur. While most brands marketing organizations still view social media and traditional media separately. An example of this occurs when traditional media is used to drive viewers to online initiatives furthering the conversation or vice versa. Without a robust platform, marketers will be unable to understand the ROI of the entire campaign. As more companies continue to adopt the IMC approach, expect predictive analysis software to grow due to the high demand for systems possessing social media capabilities. As technology continues to change online and offline interactions, predictive analysis should be adopted as an internal and external function of the organization.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: