How customer insights affect your revenue potential
15 Sep 2018 · 4 min read
There are few challenges greater than identifying and influencing the factors that drive your customers’ attitudes and behaviours. Because customers vary dramatically both in their needs and in their behavioural patterns, simple data and basic averages are not able to accurately assess your clients, in particular against the lightening fast shifts of online purchasing. Predictive Analytics offers insights that enable you to tailor your marketing channels to increase retention and loyalty, reduce customer acquisition costs, and drive product sales.
Predict behaviour that drives revenue
Predictive Analytics is a useful data processing system that allows a business to understand and predict their customers’ behaviour and performance. It does this by utilising data from across your organisation; marketing, sales, finance, tech, products, and sales are all used to paint an accurate image of the customer. This transformation of vague data into actionable data enables your business to map more efficient marketing strategies and better understand your customer and how to turn their action into your revenue.
Instead of building a campaign around internal priorities and generalised data inputs, online sales can be maximised by focusing on customer needs and patterns. This is done by gathering transaction data regarding customer behaviour, historical performance, capacity, and success of digital marketing campaigns. This data is then used to identify market trends and consumer preferences; a strategy that is valid for online sales as it provides real-time data that can be transformed into actionable, revenue generating solutions. A company seeking to become more competitive can use predictive analytics to improve their accessibility to their online consumer base, staying in touch with purchasing trends and accurately influencing customer behaviour both in time and ahead of time.
Build an ideal purchase cycle
Your revenue potential is determined by the action your consumer’s take, and understanding what action to take is critical to your marketing strategy. Once you have access to your various data sources, your predictive analytics can be used to create profiles of your best customers and the journey they took before making a purchase. This helps you uncover the reason behind a sale, and allows your company to determine the attributes needed to combine and correlate a prospective buyer into an active consumer. From here, you can predict what a prospect wants, and thus increase your revenue by developing predictive models to pursue actionable leads. By knowing who has what propensity to buy, you can focus your sales team on consumers who are likely to turn investigation into action. This is especially useful when using online marketing as you can tailor your marketing around the best real-time consumer behaviours and target them.
Build loyalty for repeat purchases
It costs more to gain a customer than it does to keep one. Your predictive analysis will allow your company to identify clients who are at high and low attention risks, empowering you with insights that enable better marketing and strategies. Taking the time to study your customer data will put your business on the fast-track to success. By knowing what your customer wants, and how to meet their needs, you can generate maximum revenue and stay both with your customer and well ahead of the market. With online sales, customers will shop around for the best deals, search reviews, and procrastinate. A successful analysis will see your company in their space in an efficient manner, enabling patterns of trust and loyalty that will see them returning to your product and thus, increasing the likelihood of a purchase.
Predictive Analytics allow your company to stay ahead of the curve. With specific data and consumer insight, you will be better able to target and market to your customers. In return, your business revenue will grow, and you’ll be able to build upon active and successful marketing strategies.