Advantages of Using Predictive Analytics in Sales and Marketing for Businesses
A statistical tool, predictive analytics is used to control various functions of a business. One of the business functions that can benefit from this tool is the sales and marketing departments. 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. Below are some of the benefits that your business can achieve from the use of predictive analytics for sales and marketing.
The use of predictive analytics for marketing can help a business optimize their marketing campaigns. It is unlikely to get regular marketing campaigns to focus their strategy on a small group of customers whose chances of purchasing the products are almost obvious. 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 gain thus gain more results from such personalized marketing plans.
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. It is possible for the company to increase its productivity when it focuses its marketing strategies on those who are most likely to buy a product, and spends the rest of the time improving the company’s products.
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. It takes less for business to retain its current customer must learn to acquire new 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.