A new generation of predictive technologies are emerging as vast amounts of behaviorial data from “clicks” and “search queries” are being crunched by powerful computers trained to mimic sales people. Online shopping has become truly creepy as moments after buying something online a recommendation is sent on another purchase – a suggestion for something of a personal nature you were only just thinking about. Yikes, how do they know your very thoughts?
Welcome to the world of Predictive Analytics and to sexy math where we are all naked.
Mathematicians at Cambridge determined that the perfect sway in a woman’s walk is determined by hip metrics of 36 inches and waist metrics of 25 inches. So what’s the perfect metric to measure audience and customer engagement? Well, we may have to wait in anticipation for the answers because sexy while attractive, is hard to get, and slow in revealing.
Predictive Analytics is a business intelligence process that produces a predictive score for each customer or prospect. It aids in optimizing marketing campaigns, website behavior, increased customer response, conversions and engagement. It is not dissimilar to data mining but concerned with predicting future possibilities using complex algorithums.
Successful personalized marketing relies on an indepth understanding of customer profiles and behaviors.This in turn leads to strategic insights and business intelligence where predictive models can be built to predict response. Response leads to the development of business actions such as cross-sell options, mail solicitation, or promotions. The results are increased response and lift rates at reduced expense for the organization.
Predictive Analytics can also play a role in enhanced operational and competitive advantages. With things changing so fast operational decisions often have to be made on the fly and under pressure. Predictive Analytics and smart systems can help with decision making, revenue growth, cost reductions, and strategy control.
In this complex world of ad networks and increasing accountability, Predictive Analytics and sexy math is clearly more than the square root of 69. It is becoming imperative as it turns Marketers into number crunchers. “Marketing Metrics: 50+ Metrics Every Executive Should Master” will blow your mind with its 114 marketing metrics. Some of the basic metrics such as the cost of customer acquistion, retention and those related to channel management are very valuable.
As we evaluate the current metrics craze and its impact on the world of marketing we can’t forget the value of spontaneous hip swaying and the part creativity plays in influencing human behavior.