In our recently launched white paper, The New 5 Ps of Marketing, Craig Schinn – Lytics’ VP of Strategic Services – tells us why today’s marketing needs to be personalized, pervasive, present, proprietary, and predictive.
Why? Because it’s no longer enough to guess what customers want. It’s not even enough to know what they say they want. If you want to compete with marketing giants like Amazon, Netflix, and Spotify, you need to be able to predict what customers want based on their behavior.
For more on why that matters (and what each of those other Ps means for marketers today), download our free white paper. Or for a quick overview, read on.
What is predictive marketing?
Good predictive insights can tell you not only who your best customers are today, but who they might be tomorrow. They can tell you not just what your customers want, but what content or offers are more likely to move them along your funnel. And a good CDP with predictive insights can do all that in real time, interacting with your customers on a 1:1 personalized level.
Predictive insights broaden marketing’s focus
In the past—in a world where marketers made decisions based on demographic data—marketing focused on the top of the funnel. How do we get new customers? How do we reach more people?
But now—in a world where we can target users based on their interests and behavior rather than demographic categories—marketers are seeing new opportunities for wins throughout the funnel. We can improve transactions, increase amount per transaction, and improve retention rates. And we can do this at every stage of the sales process—not just the early touch-points.
A predictive success story: How The Economist grew subscriptions by 300%
There’s a reason we at Lytics believe that data science and predictive insights are the heartbeat of a CDP. And that reason is our clients’ successes.
Just look at The Economist. After centralizing and unifying their data within Lytics, the brand used predictive scores to personalize their marketing and drive subscriptions. They targeted web visitors who were not already subscribers and who were likely to subscribe based on those predictive scores. Those visitors were then targeted by subscription ads on the site.
The results? A 300% increase in digital subscriptions, increased time on the site, and an 80% drop in acquisition costs.
Then there’s Dr. Martens. Using Lytics data science, the brand identified customers who had an affinity for their museum collection, were likely to engage, and had not recently purchased a satchel. They then targeted those customers with ads for their latest satchel.
Yet again, the results were incredible. The campaign not only increased conversions by 60%, but it also drove up average order value by 20%. Even better, through this campaign, Dr. Martens was able to identify customers who were six times as likely to purchase the target products and three times more likely to purchase any shoe on the site.
Put predictive insights to work for your brand
Curious about predictive insights and the rest of the 5 Ps Craig has identified as foundational to marketing success? Grab a copy of The New 5 Ps of Marketing.
Want to talk about how Lytics can help you predict customer behavior and drive real business results like those above? We’d love to chat.