If you already have established marketing channels to communicate with your existing customers, predictive targeting might work for your business. 

Predictive Targeting? What Is It?

Predictive Targeting harnesses AI, statistical models, and customer data to estimate a customer’s future needs. Its objective is presenting marketing adverts for products to the ideal customer at the best possible moment. This increases the likelihood of a conversion, and reinforces loyalty. 

This form of audience targeting employs advanced machine learning methods to predict market trends for your potential customers. This invaluable insight form of predictive targeting empowers your business to refine your spending, and fine-tune your marketing strategies with a very punctual approach to target this audience with your ads.

Should You Do Predictive Targeting?

Any business with a large database of existing clients or prospects can benefit from predictive targeting. It is important to have approved, pre-existing methods of communication in order to push adverts. This can include email, loyalty app, newsletter or other multi-media platforms. 

If you have a customized offer for a select group of people, chances are that a cookie-cutter approach won’t be effective. For instance, if you were to sell a high-end luxury car, taking the same approach you would to sell a van could be a waste of time and ad dollars. 

Does this mean that you need to sell luxury goods or services to use predictive marketing? Certainly not! What you need is a great product or service, receptive audiences and the will to create enticing adverts. 

What Industries Can Benefit from Predictive Marketing?

Predictive Targeting for Retailers

Retailers and Warehouses

In retail and warehousing, this marketing tactic can be especially effective. Through predictive marketing, you can leverage past data to construct models enabling you to accurately gauge the inventory levels you need to fulfill orders at any moment without any stock overheads. This strategic approach ensures you get to meet customer demands while optimizing your profits.

Telecom

This form of marketing also proves advantageous for telecommunication companies. Within this sector, the fine-tuning of network usage and efficient bandwidth utilization call for proper customer segments based on their needs. 

You can identify compelling offers to draw in customers for new products, pinpoint service issues contributing to customer turnover, and perform the necessary enhancements for optimizing network performance for your clients, giving them a better overall experience. They also have the unique advantage of being able to send SMS messages, something most advertisers do not have access to. 

Higher Education

Universities face fierce competition, and retaining students gets increasingly difficult. However, with predictive marketing you are able to offer more tailored educational experiences for students. This makes your brand far more appealing than other institutions employing outdated marketing methods. And, furthermore, this type of marketing goes really well with the younger crowds who make ample use of technology.