Over the years, technology has changed most companies’ approach to generating new business revenue. The shift to digital tactics has dramatically changed the cost per customer acquisition (CAC), and for those businesses that went against embracing a digital strategy, most struggled to remain in business after failing to stay relevant. Predictive Analytics and AI are the newest technologies which most companies will be forced to adopt to stay competitive.
At face value, deploying predictive analytics within a business can seem intimidating: new resources, skillsets and vendors may be required, additional time and focus must be dedicated to its success, and there is the potential to overwhelm the business with new data points. It may seem daunting, but it shouldn’t prevent a company from implementing these approaches into a business strategy. It is important to understand the many reasons why predictive analytics can provide measurable results and transform a business.
When predictive analytics and AI are effectively incorporated into a business strategy, they can drive increased sales and lower CAC. In addition, companies that work to successfully integrate this cutting-edge technology will ensure they are staying ahead of the competition in the race to acquire and retain customers.
It is imperative to invest in predictive analytics and AI-powered tools so that marketing and sales functions can integrate as much data intelligence as possible and target the correct prospects. While using algorithms to maintain an organized, focused plan of action, marketers are given a better chance of producing consistent and smarter results.
Predictive analytics is a key driver of ROI and plays an invaluable role in generating revenue impact. In MRP’s experience, one client saw a 257 percent increase in response rate when they incorporated predictive analytics into their strategy. It’s no surprise that client communications are strengthened when the right accounts are targeted, as it results in more qualified conversations.
Implementing predictive analytics and AI into a business strategy will ultimately grow revenue for a company. When they are both part of a business strategy, it helps to ensure that clients are receiving the most relevant and timely messaging possible.
Sales intelligence from predictive analytics informs sales teams’ conversations to deliver the right messaging. Together with predictive analytics, AI can help marketers take a more personalized approach and tailor tactics to a particular target account and its needs, resulting in a different outcome from client to client, with different accounts receiving a distinct message.
Not only will predictive analytics and AI improve overall communication and messaging tactics, together they can transform the pipeline. If each outcome of interactions with a customer is reported back to the machine, over time, the machine will grow smarter. AI has already begun to transform traditional marketing departments to help improve messaging tactics and, therefore, produce greater outcomes consistently. For instance, some MRP clients saw up to 197 percent higher chance of converting into closed business and up to 208 percent increase in deal size when adding predictive analytics to their sales approach.
Always getting better
Many of our clients confuse predictive platforms with intent data. Intent signals can of course, provide a lot of value; however, they are more effective as a component of a broader predictive engine. Most intent “feeds” are one direction – from the source to the client – where a world-class predictive engine will be a two-way system, providing closed loop feedback on the results of each prediction, making the engine smarter with each interaction.
Predictive analytics and AI are key components to a growing company’s success. Without these tactics, businesses will struggle in the decision-making process, which will negatively impact outcomes. Because of ever-changing methods and implementations, it is apparent that traditional marketing decisions are not the only factors that go into a successful strategy. Weaving predictive analytics and AI into a business will become the new traditional tactic of the future. Getting on board now is a crucial step toward success.