3 Benefits of Using Predictive Marketing Tools
We’re all aware that of course there’s a million benefits to using predictive marketing tools in your business but this week we’d like to focus in on three in particular, to give you even more incentive to use them.
- 1. More Sophisticated Segmentation of Data – Using location based messaging and social media has allowed companies more sources of information on customer preferences and leads. Bringing all these sources together ensures marketers gain valuable insights which in turn translates into more sophisticated segmentation. Campaigns are more successful as a result of this and marketers can use budgets and resources far more wisely to focus on the market who will buy. Nordstrom’s Technology People Lab for example – their team decided to get customer insights from the 200 million transactions and 1.2 billion online product views. Sources of data from this included click streams, purchase data, product metadata, email campaigns and inventory. Customers were sorted by their interaction with product segments and Nordstrom developed “inferred scoring”, a system that increased email-to-dollar spent conversion by 25%. There’s great potential for far better quality segmentation.
- 2. Helps Smaller eCommerce Merchants Remain Competitive – This in itself sounds like a daunting task especially with eCommerce giants like Amazon on the field. Netflix and Amazon use predictive marketing analytics to offer customers additional purchasing ideas. These personalised recommendations can only really be implemented by using predictive analysis. It’s now possible to create machine-learning algorithms that show real time and personalised offers to different consumers. Affordable Saas solutions are available for smaller eCommerce companies to use.
- 3. Minimises Wasted Money – No one likes wasting money. It’s a total nightmare. We never want to feel like we’re randomly bombarding prospects and surviving on trial and error alone, so knowing what marketing channels work best for each consumer allows companies to create carefully targeted communications instead. By using predictive tools marketers can note where to advertise and consider ways of improving direct mail and email campaigns resulting in less money being wasted.
For even more reasons to use predictive marketing tools, head on over to Practical eCommerce.
Retailers Relying on Triggers for Email Marketing
According to a recent survey by Yesmail, 83% of retailers collect email addresses through their website, and 56% do so in store while 55% get them from social media. Once the retailer has got hold of a customer’s email address it then relies on behavioural triggers such as email activity and web browsing to market to customers. 40% of retailers are using life event triggers like anniversaries and birthdays to get attention from customers. Another 34% factor in things like location, age, gender and preferences to make dynamic content for each consumer. The majority (61%) of retailers personalise the subject lines of their emails to appeal to their consumer. 42% personalise receipt names and more so (34%) even personalise the copy in the email itself and really push that personalisation to the next level.
How Digital Retailers Encourage Email Subscription Sign Ups
According to eMarketer, Publicare Marketing Communications recently analysed 6,109 retail websites that offer email subscriptions between April and June of 2015. They found that 87.3% of US digital retailers encourage these subscription sign ups on their site’s homepage and only 5.3% post the forms on sub pages. Incentives are used to drive sign ups but not as frequently as you might think. 18.8% of the retailers responded and said they used incentives to get sign ups, a surprisingly low number. Email is one of the primary ways to drive awareness for your brand and reach customers with content and incentives. Overall it remains a consistent tactic for retailers.
Facebook’s Mobile Ad Network Isn’t Just for Apps Anymore
We’ve got some good news for marketers this week! Previously, Facebook’s Mobile Ad Network only allowed you to place ads in apps, however it now allows you to place ads in mobile web browsers. Digital media consumption using mobile browsers increased by 53% from 2013 to 2015 and expanding Audience Network’s scope on Facebook provides more opportunities for marketers to drive sales. Audience Network allows marketers to use all of Facebook’s targeting tools to show ads across across sites now. 80% of ads retailers are aiming at consumers are native, since they perform about 7 times better than the usual banner formats. Facebook tested Audience Network on the mobile web with companies such as USA Today, Hearst and Today Sports Media Group.
Source: Internet Retailer