What is Predictive Marketing?

Predictive marketing strategies have become all the rage among marketers over the past few years, and with good reason. They provide customers with a unique experience, offering them a personalized suggestions based on predictive analysis. This makes them feel understood, and could speed up their buying process.

The marketing strategy works by extracting information from historical customer data to determine patterns, which can be used to predict future outcomes. Potential buyers are separated by buying habits, needs, and concerns, which can better predict their future behavior.

 

Is Predictive always the best method?

The success of this method relies on having a massive data set and sophisticated analysis tools from which to make assumptions.

This means that it works better for larger companies. Amazon is a major example of a giant corporation which has perfected the predictive method, often showing you predictive recommendations at the right time to influence a potential buyer, such as ‘Customers who bought this product also bought’ sections.

On the other hand, smaller B2B companies could be doing more harm than good if they implement this strategy. With limited data, making assumptions on future buyer behavior in this way will have more errors, resulting in customers being suggested products that are less relevant to them, alienating them and reducing the chance that they will buy.

 

What is Interactive Personalized Marketing?

Personalized marketing via interaction consists of explicitly requesting data from individual potential buyers, rather than making educated guesses. Using Pickzen’s user-friendly interface, these interactive Product Finders can be created to provide potential customers with product suggestions that match their preferred criteria.

This technique is unique in that it neither assumes what a customer is looking for, nor expects them to know the exact specifications that they desire. It presents customers with all of their options, allowing them to efficiently narrow them down to the most suitable ones.

It is ideal for smaller and medium sized companies which don’t have massive data sets, as it deals with customers on a case-by-case basis.

Furthermore, it gives a voice to the individual, rather than focusing on the ‘persona’, allowing for a more personal experience. Finally, more specialized demographic data means that companies can more accurately implement follow-up strategies based on a user’s position in the sales funnel.

 

What does this look like in action?

Questions can be presented in an appealing, conversational style, with a variety of designs and question types. Logic skips mean that the questions asked are based on the customer’s previous answers, which means that the entire process will be personalized and relevant to the individual user. They feel listened to, and the ‘virtual shop assistant’ feel makes them more confident to buy a product from the suggestions.

 

Conclusion

  • Although marketers want to anticipate needs and provide personalised experiences, often the audience data available isn’t sufficient for this to be accurate.

 

  • Interactive strategies ensure accurate suggestions for each customer, and don’t require informed but potentially faulty guesses to be made.

 

  • They also inform a customer of all their options before narrowing them down, rather than assuming that they are aware of all the product types that are available, resulting in more accurate suggestions and purchases

 

If you have an e-commerce business and are interested in implementing an interactive Product Finder to smooth out your customers’ buying journey, try it out here and check us out on Shopify.