How to Use Predictive Modeling in Your Marketing Plan
Data has always been essential to high-leverage decision-making. It’s true that 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’re able to generate and track millions of data points that require powerful analytical tools to process.
In the era of complete digitization, more and more people are willing to engage with and buy products online, be it frequent B2C or significant B2B purchases. Marketing campaigns, along with online advertising, are becoming more sophisticated and consequential to business growth.
As a result, data is king.
Those who have the most accurate and up-to-date data will always be a few steps ahead, targeting the market with more precision while using less of their budget. The data generated in the process will in turn be analyzed and used to improve the next marketing campaign even further.
Part of this ever-improving data analysis that directly applies to your bottom line is called predictive modeling marketing. Let’s explore what predictive modeling marketing is and how it can help you improve your conversion rates right now.
What Is Predictive Modeling Marketing?
As the name implies, predictive modeling marketing is marketing done based on suggestions of a certain model, which gathers and analyzes past data and is also likely to be powered by AI or machine learning. The goal of such a model is to determine the probability of success of any given marketing strategy or action.
Predictions in predictive modeling marketing could either be completely autonomous (e.g. tailored product recommendations on ecommerce websites based on the visitor’s past behavior) or simply informative (e.g. selecting a better headline for a newsletter). The predictive model itself can take into consideration millions of data points, ranging from time to location to demographics to past actions, and so on.
While just a few years ago such scale and AI capabilities were only available to leading tech giants with in-house data scientists, today predictive modeling marketing is available to any company that values the power of leveraging technology to reach its goals.
How Predictive Modeling Marketing Can Benefit You
The benefits of predictive modeling marketing are multifold.
Using predictive models, you can better understand your customers’ behavior, since they are largely based on past actions of either your actual customers or a very similar wider cohort of visitors. You can then take a lot of the guesswork out of your plans and adjust the strategy to improve the efficacy of your marketing campaigns, lead generation, and conversion opportunities.
Predictive tools also frequently automate at least some part of your sales and marketing activities. For example, predictive modeling can rate the buyer intent of various website visitors so your team can focus on those who are a better fit instead of trying to sell to everyone.
Besides lead scoring, other popular predictive modeling applications are perfecting your marketing channel mix, identifying upselling or cross-selling opportunities, profiling customers, improving retention, and guiding customer acquisition. All of these lead to an improved bottom line, and lifts in revenue.
Since many predictive models rely on real visitor interactions with your digital assets (such as your website), the data becomes invaluable in optimizing performance. For example, they can track the performance of your online ads, website user experience, call to actions, etc. This data can then be used as suggestions for better headlines, different targeting, or website optimizations. Lots of SEO and martech tools are already doing that.
Think of the value of predictive modeling marketing in terms of cost per lead. It’s not unusual for a website lead to cost anywhere from $50 to $100 in the B2B space. At 1% conversion, that means acquiring a single customer can cost you up to $10,000. If you haven’t optimized your strategy with predictive models before, it’s likely that you can double your conversion rate rapidly, saving yourself thousands of dollars per customer and allowing you to re-invest to generate more conversions and more customers for the same spend.
That’s why predictive modeling marketing is growing so rapidly.
How to Apply Predictive Modeling Marketing
As mentioned above, 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 use all available past and immediate information, including visitors’ demographics, behavior, activity patterns, and other quantitative factors. Combining thousands of variables, the model can then assign high-quality lead scores to visitors that accurately represent their buyer intent.
Armed with that knowledge, marketers can deploy the most effective tactics to engage each cohort of visitor (high buyer intent, medium buyer intent, and low buyer intent).
Lift AI is the leading buyer intent solution on the B2B market today. It uses a proprietary machine-learning model that incorporates more than one billion data points and 14 million sales engagements to learn to identify visitors with the highest buyer intent on your website.
If you have a significant amount of traffic on your web properties, Lift AI is able to assess each visitor as they navigate your website, even if they are completely anonymous (which 98% of them are) and haven’t been previously recorded in your CRM.
Here’s how Lift AI assesses buyer intent:
- You get visitors to your website through various marketing channels
- Lift AI scans each and every visitor to determine their buyer intent (with 85% accuracy) by comparing their actual behavior to the model
- Visitors who get a high score are directly connected to your BDRs through your existing online chat platform (for the best chance of conversion)
- Visitors with medium and low scores are greeted with a nurturing bot or a self-help guide to efficiently move that visitors to the next step of the funnel
Lift AI has found that on average, 9% of your traffic has high buyer intent. By connecting those visitors with your salespeople through real-time chat, you can significantly improve your website performance.
Companies that have been using Lift AI reported that within 90 days their chat conversions have increased anywhere from two to 10 times. This is what happens when your BDRs are engaging with visitors who actually want to buy your offering.
Now you know the power of predictive modeling marketing and how even one step towards integrating it into your comprehensive marketing strategy can positively affect the results of your campaigns.