The foundational principals of database marketing are that you can analyze and score a set of prospects based on their similarity to your actual customers. It's not a new premise; we've been utilizing data for a few decades now to do this. However, the process was grueling. We used extract, transformation and load (ETL) tools to pull data from multiple sources to build a centralized resource. That could take weeks to accomplish, and the ongoing queries could take months to develop and test.
Fast forward to now and the tools are becoming more and more accurate, the algorithms more sophisticated, and the results both automated and improving. Per Everstring's report, The 2015 State of Predictive Marketing Survey Report, the intersection of three factors has led to the accelerated growth of predictive marketing:
- Massive Amounts of Data – purchase history, behavior, and demographic data are now available from a multitude of sources.
- The Ubiquity of Access – access streaming data via virtually every tracked and connected resource is providing rich, real-time activity.
- The Simplicity of the Cloud – immense computing power via the cloud, new bid data database technologies with rich and sophisticated algorithms are helping drive innovation in the predictive marketing field.
What is Predictive Marketing
Predictive marketing is the practice of extracting information from existing customer datasets to determine a pattern and predict future outcomes and trends.Source: The 2015 State of Predictive Marketing Survey Report
Data is compiled on current customers, algorithms adjusted in real-time, and leads are scored for a propensity to drive business results. As well, advertising and audience sources can be measured to develop campaigns with predictive responses.
Predictive marketing adoption is still young, though. About 25% of the respondents stated they had a basic CRM, and just over 50% reported they had invested in marketing automation or were actively looking for a solution. Only 10% of respondents said they were coupling the CRM and automation with other technologies to drive business results. We've got a long way to go!
That said, the outlook is optimistic. 68% of the respondents stated that they believe predictive marketing will be an essential piece of the marketing stack moving forward. The vast majority of these respondents worked in enterprise corporations with marketing teams of over 50. 82% of companies committed to predictive scoring are researching predictive marketing.
It's not a perfect science, but it has the ability to dramatically increase trust, engagement, and conversion between buyers and sellers in the immediate future. And that goes for both marketing campaign results as well as the engagement with your sales team. Exciting stuff. Matt Heinz, President, Heinz Marketing.
To learn more about the correlations between predictive marketing and factors such as marketing team size, company size, and marketing maturity:
Download the report for answers to the following questions and more:
- How mature and tech savvy is the average marketer?
- How many marketers are using predictive marketing today?
- How are marketers currently using predictive marketing?
- How does company size, team size, and marketing strategy affect marketing maturity and the usage of predictive marketing?
EverString allows you to build pipeline and increase customer conversion rates with the only account-based, full-funnel predictive analytics solution for sales & marketing. The EverString Decision Platform is an easy-to-implement SaaS offering that seamlessly integrates with existing marketing and CRM applications to discern characteristics of your optimal accounts.