What are some benefits of predictive analytics?
If a marketer could know exactly what products and services their target audiences were interested in, their job would be much easier. While mind reading is not yet a skill that marketers possess, predictive analytics is the next best solution. Predictive marketing is comprised of the process of leveraging consumer data and analytics that best anticipate customer needs to deliver the most desirable business results. Useful predictive insights rely on relevant data and that is where travel data shows its value.
Predictive marketing is best thought of as a cycle that begins with customer data collection and ends with campaign optimization.
Anthony Hadaway, VP of Sales, Central U.S., ADARA
According to the 2015 Adobe Digital Index Travel Report, one in five travel bookings was completed on mobile and travelers are expected to spend almost $65 billion on travel, up seven percent from last year. This means travelers are digitally connected and providing digital marketers with more data and avenues to reach them. Additionally, travelers are a wealthy, high‐value target audience with significant spending power. Equipped with first‐party loyalty and customer data from the world’s largest travel brands, ADARA can anticipate customer behavior with a high level of certainty to improve marketing efforts.
Predictive marketing is best thought of as a cycle that begins with customer data collection and ends with campaign optimization. First, examine customer data on the demographic, behavioral and attitudinal levels to create individual customer profiles. Then individual consumers can be sorted into similar categories such as frequent business travelers or family budget travelers. Next, specific predictive analytic tools can produce personalized recommendations that inform marketers who they should target, where and when. While marketers run campaigns, additional data and feedback should be taken into account to improve ROI. By knowing where customers have browsed, searched and purchased, marketers have a much better understanding of what a customer will do next. By understanding these behaviors, marketers will know which platforms they should invest in, which they should reduce spend on and learn other efficiency‐maximizing decisions.
Implementing predictive marketing effectively is more challenging than it may seem for companies for a few key reasons. Most companies don’t have the ability to recognize digital consumers because these consumers are anonymous or on websites that the company does not directly own. Marketers often lack the analytic capability to rank, prioritize, and select the best audience, best offers, best points of interaction, and best media to effectively stretch their limited marketing spend. Companies need to invest in technology to capture the time and location when and where consumers reveal their interest and intent to purchase.
In addition to learning what is top of mind for consumers, marketers can turn to ADARA for competitive benchmarking to see how their campaigns are performing against competitors and industry standards as well as attribution analysis to track the corresponding marketing source that spurred a purchase. These metrics add to the feedback loop that strengthens marketing campaigns. We hope this provided a useful overview of the benefits of predictive analytics as well an informative glimpse into the complementary products ADARA offers to help brands successfully leverage data to forecast the future.