In the current business environment, there is a growing need among businesses to not only understand ‘What’s happened in the past,' ‘What’s happening in the present’ but also ‘What’s likely to happen in the future.' Organizations are looking for solutions that can assist them in making predictions based on available information and ultimately take the right course of action that will help them in converting more clients. They are looking to maximize the lifetime value of a customer by interacting with them throughout the customer life-cycle and taking interests in their viewpoints. All the gathered data is used to produce the next-best offer to the customer, in case they look for the exit door.
Predictive Analytics (PA) is the ability to extract information from heaps of data to determine patterns and predict future outcomes. To make a case for PA, let’s look at Will Smith, a Hollywood star on how he approaches picking his blockbusters. Will Smith has grossed close to $7 billion at the box office. The movies in which he stars, have a higher opening weekends and average box-office receipts higher than the movies with any other male lead. If we dig deeper to find out the reasons for this, one reason which clearly stands out is Smith’s ability to analyze and predict which movies are likely to succeed – movies with special effects, movies with creatures or with love story.
From growth focused SMB’s to large Fortune companies, all want just one thing from their CRM – conversions. Performance metrics boil down to simple dashboard view of value of the Pipeline broken down by Territory, Revenue type, sales representatives.
For marketing, it would be the number of leads generated from a webinar or an email campaign. PA can turn your cold customer leads into hot prospects and ultimately increase the conversion %. Let’s take an eCommerce example – you visit an e-commerce website and add ten items to your cart, but navigate away from the page without buying due to some reason. You might immediately get an email or phone call or an instant pop up message stating that if you buy the added items in your cart, you’ll get a x% discount. This message of-course would not be a mass message to every customer who abandons their cart but one that is tailored specifically for you. This specific message is targeted based on your past engagement to abandon cart, buy discounted items and to spend more when you are ready to check out. It makes ROI sense to send you that offer because PA predicted that doing so can drive you into action.
According to Micromarket Monitor, the PA market is expected to reach $2.3 billion by 2019 with an impressive CAGR of 25% in the United States. With the advent of smart phones, an unprecedented amount of data is being generated by consumers every day. This has allowed the organizations to develop more continuous relations with their consumers and be able to reach out to them virtually anywhere and at any point of time. With the revolution of Internet of Things, companies know what their customers are doing or looking for, and by studying patterns, they can predict what they’ll do next.
In short CRM with PA can predict customer behavior that can provide inputs to the
management for setting up their goals and targets
field sales force to sell to customers similar to the ones that they manage
marketing to ask questions, “why certain leads generated business?” and more.
Delighting customers begins with asking the right questions and predicting ahead to make them successful.
"If Will can, You Can!"