When you’re curious about what chance there is of rain, snow or something even more dramatic falling down on you, it’s good to know weather reports are reasonably reliable. While the forecasts for marketing trends may not yet be as accurate, they are getting better at indicating stormy conditions best avoided. Still in its infancy, this technology is called predictive analytics, and uses AI to help marketers forge ahead more confidently with strategy based largely on future customer behavior, in ways that would have looked risky just a few years ago.
The science takes a variety of statistics and facts about current trends to build models that are getting better at giving a good indication of how consumers will spend their money, based on analysis of past behavioral patterns. The big idea is that this will help save a ton of money on splash-out marketing campaigns and help PR agencies and their clients improve ROI numbers. Six out of 10 entrepreneurs questioned in a recent study said that think predictive analytics is an extremely significant trend, while nearly three-fourths of them said it would more definitely be so within two years.
Why predictions matter
Beyond lucrative applications for predicting the wants and needs of buyers of all kinds of products and services, the technology will be useful for prioritizing and qualifying leads, focusing publicity and campaigns on more targeted audiences, and more efficient introduction and testing of new items in the market. Predictive analytics is one more indicator of how big data is changing and enriching the information landscape in countless ways.
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