Predictive analytics looks at historical and current data, statistics and modelling techniques to make predictions about the future.
With predictive analytics, brands can forecast purchasing trends, identify the most suitable marketing channels and offer the right products on the right platforms. For example, marketers can leverage predictive analytics to analyse all customer interactions and data across social media channels to predict customer behaviour.
Similarly, predictive analytics uses multiple variables to predict and calculate customer satisfaction rates, offering brands clear insights into how happy their consumers are. Brands can even identify which customers are most likely or at the risk of leaving. Such insights can help marketers use promotions, loyalty programmes and discounts to retain audiences.
Predictive analytics and machine learning also make it easier for brands to create customer segmentation groups based on similar characteristics. Marketers can then understand how different groups have reacted to specific conditions in the past and create personalised experiences for them.
[10 minute read]