The Power of Predictive Analytics
The power of predictive analytics. How’s that for some alliteration? Sometimes I crack myself up (and no one else).
How do retailers predict which customers will buy? And when? How much will they spend? What products will they buy?
Most data analytics that are used to answer these questions are looking backwards; large retail companies (usually with over a $1 billion in sales) can afford to have teams of people analyzing the analytics of their customers’ shopping habits. You all know that I love Target. So based on my REDcard shopping card, Target knows that I buy glass cleaner, paper towels, dog food and shampoo every month. That analysis of my shopping habits translates to Target sending coupons to me – in a very timely manner! – for those items. Imagine doing that type of analysis in 10 different ways, for 50 million people. You get the idea.
HOWEVER, what isn’t done as frequently in the analytics world is predictive analytics. What if you used analytics to individually analyze every single customer? And then used probability to predict what they are more likely to buy? And then were able to target your marketing accordingly?
We are launching into this space with a partner that really knows what they are doing: predictive customer intelligence based on customer buying behavior. Using past purchase history to predict lift in revenue, all through data science!
Using data science, we can predict loyalty, risk, value and the product purchasing behaviors of each customer. You’ll be able to see what lifecycle stages your customers are in and understand from a 1:1 perspective, how to best market to each customer. Even better, the process is automated and you don’t have to be a data geek like me to understand the impact of the numbers.
Curious? Contact me and I’ll share some case studies with you.
Let this be the year you look forward…!