Potential Benefits of Using Predictive Analytics in Marketing and Sales
Predictive analytics is a tool used in various areas in managing businesses. One of the business functions that can benefit from this tool is the sales and marketing departments. Predictive analytics uses statistical analysis to analyze data and identify potential customers, thus leading to more effective targeting of customers. There are multiple benefits that an enterprise can gain from using predictive analytics in sales and marketing. Some of the advantages your business stands to gain from the use of predictive analytics in the sales and marketing department are provided in this article.
It is possible to achieve optimized marketing campaigns from the use of predictive analytics. It may not be possible for the regular marketing campaigns to specialize their marketing strategies to particular customers who have the most significant potential to buy a product. However, predictive analytics help the marketing department to define the target audience in precise terms including what they are buying and how much they spend. The information provided through predictive analytic techniques can be helpful in converting potential customers into actual customers through the creation of personalized marketing strategies. A business is enabled to come up with programs that are more effective in bringing more customers on board in comparison to the standard marketing.
Proper usage of time can be guaranteed through the use of predictive analytics for marketing. Sales representatives will only spend their time and energy on those customers who indicate the highest chances of purchasing the products being promoted. A business can achieve increased productivity by focusing on the most lucrative potential customers, thus spending more time in developing the product line in comparison to marketing to a large group of people who may not be converted into customers.
The use of predictive analytics is cost-effective. Funds are spent only on the most viable options that are likely to lead to an increase in customers. Predictive analytics, therefore, ensures that the marketing department saves on money and can use these funds for more productive purposes.
A business can also use predictive analytics to maintain its current customers. It takes less for business to retain its current customer must learn to acquire new ones. Retention of customers is achieved through facilitating the continued value for customers which initially attracted them to the business. Marketers can track the activities of customers who have left and focus the behavior of the existing customers, therefore making decisions based on this information to appeal to past and present customers to remain loyal to the business products. It is also possible to evaluate any risks that may arise regarding customer retention, and initiative taken to curb that.