Predictive analytics can help you use past data to predict likely future outcomes. While these techniques have long been used in forecasting, risk aversion, and even fraud detection, in the digital world, predictive can be extremely powerful.
These days the amount of digital marketing data and the availability of enormous processing power make the application of predictive analytics in the digital marketing space particularly exciting. It can be used to predict a likely lifetime customer value or the probability of customer loyalty or churn, and predictive techniques can also be used to gain insights into the best ways to allocate marketing budgets or understand the likely effectiveness of potential campaigns.
Check out this month’s Marketing Land column, What can predictive analytics REALLY do? Three case studies in seeing the future, which describes how a company in the auto aftermarket industry used predictive analytics to optimize digital spend towards actions that were highly predictive of future revenue; how U.S. Cellular received a 61% lift in visitor lifetime value by identifying which on-site actions were most likely to lead to purchases; and how a fashion retail group used predictive analytics to understand where to allocate their advertising budget and avoid spending money on sales that they would have acquired through organic means anyway.
Read the whole article on Marketing Land.
Want to learn more about predictive analytics? Hear more about how U.S. Cellular prioritized its website testing using insights from purchase intent analysis in this on-demand webinar featuring U.S. Cellular’s Digital Analytics Manager, Katie Birmingham.