Predictive analysis is often applied to manage supply chains and business operations and to analyze consumer behavior. According to Statista.com, predictive analysis is here to stay with a value of $5.29 billion in 2020, and is forecast to grow to $41.52 billion by 2028.
But what is it? How can it positively impact your business and marketing strategies? Let’s find out.
What is Predictive Analysis?
Predictive analysis is a form of business analysis that uses statistics or machine learning to predict the outcome of something. That something can be anything from consumer intent and customer lifetime value to sales trends.
Compared to other types of business analysis, while predictive analysis focuses on what is likely to happen, descriptive analysis looks at what has happened. Prescriptive analysis seeks answers based on the other two analytics to determine what should happen – according to what has happened and what is likely to happen.
Predictive analysis can be used to:
- Forecast future customer churn rates.
- Accurately predict future sales forecasts.
- Enable businesses to order the optimal amount of inventory to meet customer demand.
- Calculate a customer’s lifetime value (CLV).
- Predict what products a customer is likely to buy in the future.
- Prevent logistics or warehouse equipment malfunctions.
What Are Methods of Predictive Analysis?
Harnessing current and/or historical data with statistical techniques like predictive modeling, deep learning algorithms, machine learning, and data mining, predictive analysis can forecast future likely events.
Other types of predictive analysis techniques include:
- Data clustering uses machine learning to group objects into categories based on similarities, such as audience segmentation based on past engagement.
- Classification is a prediction technique that involves calculating the probability that an item belongs to a particular category.
- Logistic regression finds correlations between inputs and outputs.
- Decision trees are supervised learning algorithms used to determine courses of action and the probabilities associated with each, depending on sets of variables.
- Time series analysis is a technique used for analyzing time-series data, such as changes over periods.
What is a Predictive Analysis Example?
A good use case for predictive analysis is in the eCommerce space – specifically product recommendations. Smart algorithms create accurate projections for consumers based on what they’ve previously bought and other contextual reasons.
One example of these algorithms in practice involves looking at the purchase and reviewing the history of the consumer and recommending products on similar user data. Any products that the user has previously purchased would be disregarded.
Brands seeking to improve customer engagement and conversion rates often garner great results from recommendation engines. Done right, this predictive analysis marketing strategy encourages upsells and cross-sells, establishes brand loyalty, and ensures the customers return for more.
The Role of Predictive Analysis in Marketing
Predictive analysis forms the backbone of winning marketing strategies. This is because using data in the right way enables personalized customer experiences and drives sales. In marketing, needs forecasting is a widely used predictive analytics tool, where businesses anticipate customer needs based on their web browsing habits.
For instance, online home renovation retailers can predict when a customer is in the market for decorating products due to increased searches for home improvements.
Predictive analysis solves customer problems before they are aware that they have problems. Using customer intent and behavior data, businesses can see which customers are more at risk of churn and act accordingly, even if they have a PandaDoc convertible note agreement template in place. Proactively addressing potential issues is a good business position to be in and minimizes the impact on the overall customer experience.
New Customer Acquisition
Use data segmentation as predictive analysis to define customer identification models. This practice works by identifying potential customers based on your existing customers’ needs, wants, purchase behavior, and preferences.
Optimize Marketing Budget
Predictive analysis enables marketers to spend budgets more effectively – whether the goal is to convert potential customers, attract a new audience segment, or retain existing customers. Because predictive analysis can help you understand the actions of users that indicate their conversion intentions, you can craft relevant landing pages, sales funnels, and marketing campaigns that are poised to positively impact your bottom line.
The Predictive Analysis Marketing Process
How could predictive analysis look in your business?
- Define what question you want to answer – e.g. which prospects are likely to sign up for my service within the next 30 days?
- Gather the data – our example needs historical prospects data (specifically how much time it took past prospects to convert), demographic and channel data, plus a current list of prospects.
- Undertake descriptive analysis to determine facts, such as whether the average conversion time varies between channels and whether demographics correlate with these time frames.
- Use statistical techniques to test your theories.
- Create a predictive model after your test discoveries to predict outcomes.
- Deploy the predictive model to glean actionable insights, e.g., the prospects that will likely sign up within the next 30 days.
- Create targeted marketing strategies with these prospects in mind in the hope of maximum conversions.
- Update the predictive model regularly to meet new requirements.
Remember that external influences can skew your data – think about seasonal changes, news events, global crises, etc.
How to Maximize Success in Marketing with Predictive Analysis
Some critical tips to use predictive analysis to its best effect include:
- Gather as much of the right data as possible.
- Decide on the most relevant modeling techniques and algorithms for the specific project.
- Have processes to reduce potential biases.
We Predict That Predictive Analysis is the Future of Marketing
Predictive analysis is fast becoming a vital decision-making tool for forward-thinking businesses. Regardless of industry, predictive analysis can give you the insights you need to drive your marketing. By enabling intelligent data for science collection and harnessing it to accurately predict future outcomes, organizations use predictive analysis to make extremely profitable decisions.
How to Maximize Website Conversion Rates Through Mobile Optimization Strategy
If you’re struggling for conversions, it’s tempting to throw money at the problem in search of a quick fix. Resist that temptation, though – because the key to a better conversion rate isn’t always to be found by pumping money into your ad campaigns, or a flashy new marketing drive.
Nope – the solution’s much more simple. Mobile optimization!
Starting with your site’s mobile experience makes sense. After all, 46% of Americans spend between five and six hours on their phones, every day. When they come across your website, it’s likely to be via their phones. Meaning your site needs to be ready.
Below, we’ll walk you through our top 4 mobile optimization tips. Follow them, and you’ll end up with a clean, compelling, and customer-centric site – that’s ready to convert.
What is Mobile Optimization Strategy?
First things first – what is mobile optimization, exactly?
Mobile optimization is the process of tailoring your website to users accessing it on a mobile device, such as a smartphone or tablet (as opposed to on a desktop computer.)
It involves ensuring that your website’s layout, structure, and content are customized to mobile devices. So why is that important?
Well, think about the consequences of a site that isn’t optimized for mobile. Content displays as misshapen or missized. Elements jump around on the page, as if with a life of their own; you find yourself having to zoom madly in and out, simply to read the text on the screen.
Sloppy mobile optimization – or total lack of it – means a frustrated user. And frustrated users rarely turn into customers!
How To Maximize Your Conversion Rates Through Mobile Optimization Strategy: 4 Top Tips
Ready to start maximizing your conversion rates – and make your website more mobile-friendly in the process? Here are our 4 top mobile optimization tips:
- Provide a simple, clean checkout experience
- Add on-page product recommendations
- Offer more ways to pay
- Strengthen your CTAs – and their visibility
Read on for the full scoop.
1. Provide a Simple, Clean Checkout Experience
The first way of boosting your mobile site’s conversion rates? Optimizing your checkout flow to ensure you’re providing a frictionless experience at the checkout.
How exactly you do this will depend on how you’ve built your website. But a few broad tips include:
2. Add On-Page Product Recommendations
Integrating on-page product recommendations is a low-effort – but potentially high-impact – action for optimizing your mobile site.
The on-page product recommendations you recommend could be products the customer has recently viewed, or ones similar to the products they’re currently looking at. These will appear in the frame as they browse your store on their mobile, meaning they can quickly, and easily navigate to the kinds of products they like.
On-page product recommendations are great for UX. But they’re also good for your conversion rates – as you’re removing one more barrier to your customer making a purchase.
3. Offer More Ways to Pay
These days, offering a diverse range of ways to pay isn’t simply a ‘nice to have.’
It’s a must-have. And, along with choosing the right web hosting provider and building your site with the most suitable platform, it’s one of the biggest website decisions you’ll make.
Consumers are more discerning now than ever. Many distrust the process of paying online; others just want the process to be as slick, seamless, and speedy as possible.
Your job? To ensure your customers can pay with multiple different payment methods, including:
- Mobile wallets (such as Apple Pay and Google Pay)
- Credit and debit cards
Millennials, in particular, are fond of the convenience and ease mobile wallet payments offer. In the US, Gen Y leads the share of consumers making digital or mobile wallet payments (46%), according to Statista.
And, to target Gen Z, you can even offer your customers a ‘Buy Now, Pay Later’ (BNPL) service. It’s big with that demographic – in the US, 55.1% of Gen Z consumers 14 years old and over will use a BNPL service at least once this year.
4. Strengthen Your CTAs – And Their Visibility
When it comes to maximizing conversions, compelling call-to-actions are a must.
So take the time to audit the content, placement, and design of your website’s current CTAs. Do they:
- Start with command verbs that create excitement and engagement.?
- Cultivate a sense of urgency?
- Demonstrate the benefit to the customer if they choose to take action?
Remember, you’re optimizing your CTAs here for mobile devices. So think about your user, and how they’re interacting with your site. They’re already on their phone, after all – so how can you tap into that to improve your CTAs?
One tip is to use phone call-based CTAs. Instead of inviting someone to fill out a lengthy contact form, or get in touch via email – both trickier to do from a mobile phone, or while on the go – invite them to call to make an inquiry, instead.
Plus, CTAs aren’t just about the wording – what they say – but about how they look. So make sure they stand out from the rest of the page’s content (you want people to know they’re looking at a CTA, after all!). Harness the powerful simplicity of white space. And, if there’s a button, make sure it’s big, bold, and screams “click me!”
Mobile optimization won’t just improve the look, feel, and usability of your site. It’ll increase your conversion rates – and help you grow your business online, too.
So good luck, and have fun implementing these tips. Mobile optimization can be tricky and time-consuming. But the results will be worth it in the end – trust us!
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