Predictive analytics is a tool used in various areas in managing businesses. Among the areas of impact that can be influenced by the use of this statistical tool is the sales and marketing function. Predictive analytics uses statistical analysis to analyze data and identify potential customers, thus leading to more effective targeting of customers. There are multiple benefits that an enterprise can gain from using predictive analytics in sales and marketing. Some of the advantages your business stands to gain from the use of predictive analytics in the sales and marketing department are provided in this article.
The use of predictive analytics for marketing can help a business optimize their marketing campaigns. It may not be possible for the regular marketing campaigns to specialize their marketing strategies to particular customers who have the most significant potential to buy a product. Predictive analytics accord the marketing department specialized information on their potential customers, such as what they spend on and what is expected to appeal to them in the future. Such information can help the marketing department come up with personalized plans to help bring on board these potential customers. A business gain thus gain more results from such personalized marketing plans.
Proper usage of time can be guaranteed through the use of predictive analytics for marketing. Time is saved when sales representatives only market products to those who are likely to purchase such products through the results given in predictive analytics. Time can be spent in enhancing the products and improving other facets of the business other than draining off to people who are not interested in the product.
A business can gain reduce the costs of marketing through the use of predictive analytics. Funds are spent only on the most viable options that are likely to lead to an increase in customers. Predictive analytics, therefore, ensures that the marketing department saves on money and can use these funds for more productive purposes.
A business can also use predictive analytics to maintain its current customers. Obtaining a new customer for a company is more costly and involving than keeping the current ones. Customer retention is done through marketers ensuring the rights customers continue to receive their value for which they came for in the first place. Predictive analytics can be used to retain customers by forecasting the behavior of current customers and making efforts to ensure that they remain loyal to the products of the company. Any potential risks that can lead to customer loss are also pointed out.