The demand for predictive marketing has been growing ever since the early adopters saw great returns. The first companies that discovered the benefits of predictive marketing are Amazon and Netflix. With their highly equipped internal data science teams and patented algorithms, they are enhancing the offers delived to their customers. The good news is that; predictive marketing is also available for small and mid sized companies especially to ecommerce websites. New technologies and SaaS martech tools are making it reachable even for the SMB ecommerce marketers.
Predictive marketing simply means using data science to make smarter marketing decisions by predicting which marketing actions are more likely to succeed, and which are more likely to fail. (1) From a marketer’s standpoint, this is like a dream come true! After all, as SMB marketers we all try to understand our users, predict their next behaviour and come up with offers that will suit their tastes and make them buy. These efforts also yield a high return on investments. A study by Forrester Consulting reported that predictive marketers are 2.9x more likely to report revenue rate at a higher than industry average.
SMB ecommerce marketing is tough especially if you’re playing with small budgets. You acquire your customers via Facebook, Instagram, Google Ads and some blogging and you get dissappointed when 96-97% of your visitors leave your online store without even making a purchase. You feel as if all the time and money spent on marketing was for nothing. That’s where predictive marketing comes into play! With many tools and solutions offered, predictive marketing can help you understand who your visitors are, what they’re looking for and which products they’re likely to buy.
Predictive marketing come in many forms such as:
- Product recommendations
- Predictive segmentation
- Triggered e-mails, pop-ups, push messages and SMS
- Churn analysis
- Personalized gifts and discount coupons
- Predictive prioritisation (2)
Predictive marketing used to be the playground of big tech vendors targeting enterprise-level companies. Today, there are some great SaaS tools (i.e. Perzonalization) aiming to help small and mid-sized ecommerce businesses reach their goals with state-of-the-art predictive marketing techniques. With no installment costs, these tools are available on a monthly fee and are all experienced in dealing with the problems SMB ecommerce merchants might have.
For ecommerce websites, predictive marketing is growing as a must have tool rather than being a nice to have solution as consumers are demanding more personalized and intelligent interactions from the online retailers. They are aware that the retailers have chunks of clickstream and purchase data that can be used on behalf of the online shoppers. Today is the day you should start using predictive marketing or get behind competition.