Read on to learn more about attribution modeling, data cleanliness, influencer marketing, COVID effects, and how to get started.
What is Predictive Analytics?
Predictive analytics can seem complicated, and well, quite frankly it can be. However, if you focus on the data, it can be a simple and reliable way to increase conversion rates.
Predictive analytics includes using statistical techniques such as predictive modeling and machine learning to take future actions based off historical data.
Using predictive analytics allows you to learn from what has worked and what hasn’t in the past. It’s a way for you to interpret data and use that for the benefit of your company.
COVID Effects On Consumer Behavior
John talked a bit about how COVID has changed buyer behavior. He said that things have become a bit more complicated. Before the pandemic, they used to be able to generate models with a 95% or greater confidence interval.
There’s been quite the shift in search behavior. With everyone working from home now, it’s made it more difficult to predict consumer behavior.
Even though predictive analytics has become slightly trickier, it is still crucial to the success of your business.
Predictive analytics helps you to better understand multi-touch attribution. In other words, there are usually a few different touch points that has led someone to buy, and you’ll want to analyze what they were.
For example, if someone was emailed a piece of content which then led them to visit your website, which then led them to buy, you can give some credit to the email and some credit to your website.
Predictive analytics helps you determine how much credit to give to what. It can show you what is most likely going to lead to a closed deal.
Let’s say you’ve analyzed the data and have found out that emails leads 80% of people to purchase. Then run with that! Or, if the trend shows that you really just need to get people on your website in order for them to convert, then you need to focus your marketing efforts on getting more high quality/high intent users on your site.
It’s best to test every touch point to really narrow in on what is getting people to buy.
It’s all about tracking human behavior.
As you track and interpret the data, maybe you’ll find out that only 10% of your target group looks at a piece of content you send them, whether that be a whitepaper or a video or an article. 10% seems like nothing! But the data shows that those 10% always close. Well, then it’s worth it to keep targeting to them.
You should make predictive models based off all your research.
It’s interesting how you can essentially map backwards and find out which marketing plays got them into the funnel and which got them to close.
Predictive analytics will show you things like where all new business is coming from and where all closed deals are coming from, whether it be social media or email newsletters or whatever it may be.
The Influencer Effect
Let’s shift the topic a little and discuss the influencer effect.
The success of your product/business depends a lot on the influencer effect. People are more likely to buy when they are influenced to do so by others, whether that be a well-known influencer in that same field or simply a friend who recommended the product.
This shows that human connection is still very real and relevant in the sales and marketing world. People trust other people’s opinions.
Driving leads through affiliates isn’t a bad play.
This relates back to the 2021 Annual RevTech Benchmark Study. One of our findings in that study was that companies tend to have higher adoption rates in the regions they are located in. And that can be attributed to the influencer effect and lead generation through affiliates.
To really see the effects of influencers, you should analyze the traffic on social media. A lot of people think you just need to see who has the most followers and likes, but more importantly you need to find out who’s being talked about. The trend-makers will be the ones who generate high traffic whenever they post something, no matter how many followers they have.
3 Tips To Help You Get Started With Predictive Analytics
- Google Analytics has a great 90 day window decay model that can give you a kick start to implementing predictive analytics into your marketing and sales strategies. It will help point you in the right direction.
- You should consider affiliate marketing. You can set people up as affiliates and even give them a custom landing page. Google Analytics also has a system to help you do this well.
- Don’t forget about data cleanliness. It seems like the majority of the work is building the data structure and cleaning the data, but that is vital! It’s challenging, but it’s worth it.
What Should Your Tech Stack Look Like?
You might be wondering what platforms to use in order to make your predictive models. You really need a combination of a few technologies, many of which you probably already work with.
Here’s a list of some options to incorporate in your tech stack:
- Google Analytics
- Oracle Netsuite
As you can see, you should be using a range of technologies from CRMs to email service providers to analytics software, etc.
Quick Recap of Predictive Analytics
In conclusion, predictive analytics is data collection, data interpretation, machine learning, and predictive modeling, all with the purpose of figuring out where to put your money so that it actually drives sales.
The data is there to learn from. Collect it, analyze it, interpret it, and use it to make better decisions in the future!