Updated April 19, 2023: As AI and predictive modeling marketing in particular continue to develop, we’ve refreshed the article to reflect the latest advantages of integrating them into your sales workflow.
Data has always been essential to high-leverage decision-making. The more we know, the better decisions we can make. But while the data of the past was easy to keep in one’s head, today we generate and track millions of data points that require powerful analytical tools to process.
In the digitization era, companies are used to engaging with and buying products online. Even significant enterprise software contracts might start with a quick message in an online chat.
That’s why online marketing campaigns and advertising are becoming more sophisticated and consequential to business growth.
Data is king.
If you have more accurate data than your competitors, you’ll always be a few steps ahead, targeting the market with more precision while spending less.
This creates a cycle of ever-improving data analysis and allows you to leverage predictive modeling marketing, which can improve your conversion rates and bring in more revenue.
Tip: Get the best of predictive capabilities in one automated tool with Lift AI. It integrates right into your marketing stack and identifies website visitors with the highest buyer intent, simplifying your sales process.
What Is Predictive Modeling Marketing?
Predictive modeling marketing allows companies to find the most effective marketing strategy and make better marketing decisions by leveraging data with the help of AI or machine learning.
There are two types of predictive modeling marketing:
- Autonomous (e.g. showing tailored product recommendations based on past behavior)
- Informative (e.g. suggesting a better headline for a newsletter)
Both types evaluate millions of data points, from time to location to demographics to past actions, to produce accurate results.
A few years ago, AI capabilities on this scale were only available to leading tech giants with in-house data scientists. Today, predictive modeling marketing can be used by any company that sees the benefit of leveraging the latest technology to reach its goals.
Why You Should Use Predictive Modeling Marketing
Predictive modeling marketing can benefit you in multiple ways, from providing new insights to automating tasks to increasing revenue.
Predictive models help you better understand your customers’ behavior, since they use past actions of either your actual customers or a similar cohort of visitors for their analysis.
As a result, you can take the guesswork out of your plans and adjust your strategy in a way that improves the efficacy of your marketing campaigns, lead generation, and conversion opportunities.
Predictive tools can help automate your sales and marketing activities. For example, rating the buyer intent of various website visitors to allow your team to focus on those who are a better fit for your product or service instead of trying to sell to everyone.
Predictive modeling applications can improve your marketing channel mix, identify upselling or cross-selling opportunities, segment customers, increase retention, and guide customer acquisition. All the above leads to better revenue growth.
Predictive models rely on visitor interactions with your digital assets (e.g. your website), and that data can become invaluable in optimizing performance.
For example, predictive tools can track the performance of your online ads, website user experience, and call-to-actions. You can then use this data to write better headlines, adjust targeting, or improve UX design. Lots of SEO and martech apps are already offering such capabilities.
It’s useful to think of predictive modeling marketing in terms of cost per lead. If an average B2B lead costs you between $50 and $100 dollars, acquiring a single customer at 1% conversion could set you back $10,000.
With predictive models, doubling your conversion rate doesn’t take too much effort, but it saves you thousands of dollars on every customer and allows you to reinvest into generating even more conversions for the same spend.
That’s why predictive modeling marketing is growing rapidly right now.
How to Apply Predictive Modeling Marketing
There’s a wide range of marketing activities where predictive modeling can be of help. One of the most effective ones is identifying buyer intent.
Unlike your BDRs, predictive models rely on all available past and real-time information to make decisions, including visitors’ demographics, behavior, and activity patterns. Combining thousands of variables, the models can then assign strong lead scores to visitors with high buyer intent.
In turn, marketers can use that knowledge to deploy the most effective tactics to engage each visitor cohort (from low to high buyer intent).
Lift AI is the leading buyer intent solution on the B2B market today. It uses a proprietary machine-learning model that incorporates 15 years of sales insights and more than one billion data points to identify visitors with the highest buyer intent on your website, even if they are anonymous (as up to 98% on a typical website could be).
This is how Lift AI assesses buyer intent:
- Visitors come to your website through various marketing channels
- Lift AI scans each visitor to determine their buyer intent (with 85% accuracy) by evaluating their real-time behavior
- Visitors who get a high score can be directly connected to your sales team (e.g. through a chat platform) to get the best chance of conversion
- Visitors with medium and low scores can be greeted with a nurturing bot or a self-help guide to be efficiently moved to the next step of the conversion funnel
On average, 9% of your traffic has high buyer intent. Connecting them to your sales people in the most efficient way can significantly improve your website performance.
Companies using Lift AI have reported that within 90 days their chat conversions increased anywhere from two to 10 times.
PointClickCare increased conversions by 400%, adding over $1M of incremental revenue in the first year. Formstack, another Lift AI customer, increased pipeline sales by 420%.
Predictive modeling marketing works because it leverages new technologies to improve well-established sales patterns.
Integrate predictive modeling marketing into your workflow today for free with a 30-day trial of Lift AI.