What Your Business Stands to Gain from Using Predictive Analytics for Sales and Marketing Functions
Predictive analytics is used in the management of different business processes. Among the areas of impact that can be influenced by the use of this statistical tool is the sales and marketing function. The analytical tool analyzes large chunks of data to produce accurate predictions of potential customers and future course of action. There are multiple benefits that an enterprise can gain from using predictive analytics in sales and marketing. Here are some of the potential gains for your business from the use of predictive analytics in sales and marketing.
The use of predictive analytics for marketing can help a business optimize their marketing campaigns. Traditional marketing offers no specialization on the most likely customers of a product. However, predictive analytics help the marketing department to define the target audience in precise terms including what they are buying and how much they spend. Such information can help the marketing department come up with personalized plans to help bring on board these potential customers. A business can, therefore, have more focused marketing campaigns that give better outcomes in comparison to traditional marketing.
It is possible to save a lot of time from using predictive analytics in marketing. Sales representatives will only spend their time and energy on those customers who indicate the highest chances of purchasing the products being promoted. 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.
The use of predictive analytics is cost-effective. Money is spent on marketing campaign starts are likely to result in actual conversion into customers from potential customers. A business can achieve reduced costs by applying these tool in marketing and can use such funds for other activities.
Predictive analytics can be used by the marketing department as a way of maintaining current customers. Obtaining a new customer for a company is more costly and involving than keeping the current ones. Maintaining current customers requires marketers to ensure that the customers continue to receive the utility that drew them to the product 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. A business can find out what risks can lead to reduced customer loyalty and take appropriate action.