Marketing technology has made significant strides over the past decade. To think what has transpired since 2005 is quite remarkable and a testament to the future of the industry. One of the most impressive strides, predictive analytics, is transforming how marketers engage their customers. The ability to predict what a customer will buy next is dream for any business – and this dream is fast becoming a reality through technology.
But what is predictive analytics? How does it work? How will it benefit my company? As with most technological advancements, suspicions and uncertainties will be abundant. Lucky for you, this is a 100-level article, so the answers and explanations will be clear and specific to the question.
: Have you ever been to a professional sports stadium? Stadium officials love to use predictive analytics to enhance their sports venue. For example:
“Predictive analytics using both operational and social conversation data can, for example, aggregate and correlate hot dog sales to locations in the stadium, inform analysts ‘why’ that location was a high sales activity location, if it is likely to repeat, or even if it is a desirable location to make it consistently repeatable.”
Casinos also use predictive analytics to make strategic decisions. Different models allow pit bosses to see what slot floors are doing the best, what gaming floor is doing the worst and how non-smoking tables add up against smoking tables. Gamblers also use predictive analytics, most notably on events with a lot variables like the annual NCAA Men’s Basketball Tournament.
Matt Diehl is the Digital Content Writer for Persio, a multichannel marketing and decisioning SaaS platform used by leading retailers such as EXPRESS, JoAnn Fabrics and Stage Stores. Persio delivers custom, personalized campaigns across email, messaging, app and web to increase customer lifetime value. Matt has over seven years of professional content experience and has been with Persio since March 2015.