Marketing technology has made significant strides over the past decade. To think what has transpired since 2005 is quite remarkable and a testament to the future of the industry. One of the most impressive strides, predictive analytics, is transforming how marketers engage their customers. The ability to predict what a customer will buy next is dream for any business – and this dream is fast becoming a reality through technology.
But what is predictive analytics? How does it work? How will it benefit my company? As with most technological advancements, suspicions and uncertainties will be abundant. Lucky for you, this is a 100-level article, so the answers and explanations will be clear and specific to the question.
What Is Predictive Analytics?
At a glance, the definition may seem topical. “Analytics that predict things,” right? There is some truth to that, but the word “things” should never be included in a definition. This is an educational article, after all. A true definition of predictive analytics would sound like this:
The collective use of data and statistical algorithms to predict future trends, probabilities and events.
Data and algorithms are the real meat and potatoes here. They rely on each other, and if one is lacking the combination doesn’t work. It’s all about quality data being plugged into fine-tuned algorithms. Like any high performance engine, there is a myriad of moving parts that requires premium, top-grade fuel to perform.
One of the best ways to explain predictive analytics is to cite specific examples. Marketing technology terms tend to frighten people until they identify familiarities with other phrases they know. The following examples should help you identify, clarify and simplify your understanding of predictive analytics.
Examples of Predictive Analytics
Ok, now the fun begins. It will be fun because you should recognize some of the examples below. In fact, you may be surprised at how much you know about marketing technology already. Let’s see how you do:
Matt Diehl is the Digital Content Writer for Persio, a multichannel marketing and decisioning SaaS platform used by leading retailers such as EXPRESS, JoAnn Fabrics and Stage Stores. Persio delivers custom, personalized campaigns across email, messaging, app and web to increase customer lifetime value. Matt has over seven years of professional content experience and has been with Persio since March 2015.