First came email. Then came social media and mobile marketing. Now it’s targeted offers and messages, specifically tailored to the individual consumer, driven by predictive analytics. Retail marketers are definitely feeling the squeeze as more sophisticated marketing tactics are implemented as a means to attract wallet share for a very difficult to reach segment of the population: consumers who have the means to spend, and are spending!
As the nation slowly and painfully attempts to achieve some form of economic recovery, retailers are working harder than ever to identify consumers who have the means to spend, and win their loyalty through sophisticated marketing strategies. Despite all these challenges, some retailers are actually achieving record successes with their marketing efforts.
No big surprise that the greatest success stories are those tied to organizations that:
- Truly understand who their customers are
- Understand what their best customers and prospects “look like”
- Understand the best way to communicate with their customers and prospects
- Use predictive modeling and analytics to target prospects and customers with personalized, relevant offers
- It’s a classic case of “Keeping Up With The Joneses’” and any retailer who wants to keep and grow its customer relationship (or even identify new customers) must implement advanced analytic modeling and data-based marketing strategies to first understand its best customers – and how to find more customers like them.
How significant of an impact can predictive analytics bring to an organization’s marketing efforts?
In a recent Aberdeen Group research paper (“Divide & Conquer – Using Predictive Analytics to Segment, Target & Optimize Marketing” Feb. 2012) the authors provide insight into the power of analytics in driving success with marketing campaigns. According to the research paper, organizations studied which use predictive analytics to drive segmentation and targeting tout a marketing response rate of nearly 70% higher (on average) than organizations who do not. And while many of those studied by Aberdeen cite that they intend to enhance their marketing efforts with predictive analytic capabilities (almost half of those studied indicated they have intentions to do so within about a year), the results are so compelling, it makes me wonder why any organization would ever embark on any marketing effort without the benefit and insight provided by predictive analytics.