Predictive Analytics is the quickest way to improve your bottom line. It tells you who is likely to buy, who is likely to defect from your business, and how to craft a message that will resonate with your customer. So what does an analytics strategy look like?
Acquisition: Figuring out who is most likely to buy is the first step. It tells you who is more likely to respond, who much they are worth, and how hard you should try to convert them.
Knowing who is likely to respond allows you to save money. Typically we find that about 70% of the buyers fall within the top 30%. This means you could save 70% of your marketing budget and still get 70% of your sales! Next, you need to determine how much each unique customer is worth. Knowing their worth tells you how hard you should work to convert them — how many mail pieces, what kind of discount or incentive, etc. All of this improves your bottom line because you are targeting those likely to buy, balancing acquisition cost with customer value and being smart about who to incentivize instead of giving away margin needlessly.
Retention: Everyone knows it costs a lot more to acquire a customer than to keep one. Use analytics to find out who is likely to defect, who is likely to buy again and who is a good prospect for upsell and cross-sell campaigns.
Segmentation: Everyone is inundated with offers. Analytics lets you stand apart from the crowd with personalized messages. We are not talking about their name. We are talking about recognizing what is important to them — their lifestyle, their beliefs, their recreational activities — so you can send offers that resonate with who they are and what they value.
Analytics is a powerful ally in today’s world of big data. Practically every mid to large-sized company is using big data analytics today. Our team has extensive experience working on projects for dozens of companies. Call us today for a free consultation, or email us for some additional literature on how we can help you meet your goals.