Predictive analytics is a buzzword that’s been making quite a noise in email marketing. From helping marketers understand customer needs to making smarter and informed decisions, predictive analytics is doing it all to give marketers the competitive edge they need to ensure their campaigns stand out in the inbox crowd.
By using machine learning and statistics, predictive analytics analyses transactional and historical data to help make data-driven decisions. By incorporating predictive analytics in email marketing, marketers can better analyse customer data such as browsing history, personas, shopping behaviour, etc. to identify future opportunities and trends.
According to a survey conducted by Smart Insights, it was found that 28% of marketers consider predictive analytics to be the contributor having the largest impact on businesses. That is why more and more businesses are optimizing their email campaigns with predictive analytics to extract real-time insights from data and use it to attract, retain and nurture customer relationship.
The below graph reflects the survey result as follows:
If that’s not all, let’s have a look at how predictive analytics help businesses improve their email marketing efforts.
All your customers are not same. As businesses are of different sizes and have different approaches, their product and service needs are also unique. While targeting customers with email campaigns, you cannot proceed with generic email content. That is when predictive analytics come into play by helping you extract valuable information from customer data so that you can use the same to create personalized emails as per individual customer need.
Personalization is the key to increased email open and click rates. Here is the graph to highlight on the same:
By personalized email content, we mean content that offers product recommendations, exclusive deals, customized services, etc. based on customer’s buying pattern, interests, needs and purchases. Predictive analytics enables marketers to better understand customer and connect with them on a deeper level via their email campaigns.
With predictive analytics, you get to optimize your email marketing campaigns on a personal level to better engage the customer. For instance, you can send them a customized offer on birthday to make them feel valued. Adding personalization to your email marketing program will surely increase conversion rate and trigger sales opportunities.
Predictive analytics uses an algorithm to analyze customer data and help forecast future outcomes. The same model can be utilized to recommend products and upsell to your email subscribers to increase conversions. Email marketing campaigns optimized through predictive analytics serve as the perfect outlet to sell more to your customers.
Using predictive analytics, marketers can monitor the customer’s previous purchases from their website or store. Based on the insight, they can recommend similar or additional items that they are most likely to buy next. In this way, you can keep customers interested and engaged with your brand by addressing their needs beforehand.
For instance, if the customer has purchased a student desk from your site, you can send an email recommending him of additional items like the back office chair that he may need with the original purchase. Also, you can offer them a discount on similar products for their next purchase by sending them an exclusive deal announcement email. All this will provide happy customer experience, increasing your sales through upselling tactics. However, make sure that before recommending, you analyze the customer needs properly so that you don’t end up suggesting products that they are unlikely to buy.
“Happy customers are your biggest advocates and can become your most successful sales team.”
It is indeed a daunting task to track the shopping behavior and other valuable customer insights of every single customer. Moreover, this process isn’t a onetime job. As customer buying patterns keep changing, marketers need to ensure that the sheer volume of data generated is stored in real-time and is accurate. This is when predictive analytics makes things easier than imagined. It helps businesses in improving relationship with the customer through effective nurturing campaigns.
Once the customer data is in your possession, all you need to focus on is how to reach targeted leads with relevant content and offers to include them in the sales funnel.
Together with predictive analytics, marketers can make use of the following nurturing campaigns to turn leads into paying customers and better nurture relationship with the existing email subscribers:
Welcome Campaigns: Whenever a new customer signs up for your email newsletter or makes a purchase from your site for the first time, sending them a welcome email works wonders. Such campaigns may include come back offers or discount coupons or a simple thank you note appreciating their purchase. Using predictive analytics, you can analyze customer’s purchase amounts and onsite behavior to decide which new customer should get which coupon.
Loyalty Campaigns: Customers who frequently shop from your site deserves some kind of loyalty reward. You can use data collected through predictive analytics to find out your loyal customer list and send them emails with exclusive incentives or discounts as part of the loyalty program. This will motivate them to come back and stay connected with your brand.
Retention Campaigns: Retention emails help you to reach out to inactive customers who have been missing out for quite some time. Before you lose them forever to a competitor, try to win them back by sending them reminder emails with exciting deals to encourage their purchase decisions. In this process, predictive analytics can prove beneficial as it can provide you with insights on inactive customers analyzing their purchase behavior.
When used efficiently, data can power up your business and boost sales opportunities. With the right use of predictive analytics, marketers can make the best use of customer data and scale up their email marketing campaigns to attract and engage customers. Using customer insights driven by analytics, businesses can gain more email subscribers and nurture customer relationships, providing extraordinary experiences throughout the sales cycle in the long-run.