Marketing

Predictive Analytics Transforming Marketing

Predictive Analytics and Marketing

Predictive Analytics Marketing and Sales

Predictive analytics has become one of the newest marketing buzzwords in 2016. However it’s more than the latest catch phrase. It’s the wave of the future in a myriad of disciplines. The use of predictive analytics in marketing and sales has become one of its most valuable business applications.

 

What is predictive analytics?

Many in the business world still don’t know what predictive analytics is or how it works and often fail to understand its full potential as a marketing model.

It the use of data, statistical algorithms and machine-learning to predict future outcomes. It is a multi-step process consisting of the following:

– Collection

– Analysis

– Interpretation

– Implementation

A key goal is to intelligently automate communications.

 

How Does Predictive Analytics Work?

Data is collected behaviors and actions of consumers and potential consumers from a from a variety of sources. This data is then combined with profile data about consumer characteristics.

The data is distilled and interpreted by sophisticated algorithms. Based on the analysis relevant communications and/or offers are made to likely consumers. Predictive analytics goes beyond descriptive statistics and reports on what happened in the past to provide a best assessment on what is likely to happen in the future. This streamlines decision-making and produces new insights that lead to better actions.

The ultimate goal is to apply mathematical models to predict the probability of an outcome.

 

The New Marketing Model

In a predictive analytics marketing model, relevant actions are carried out based on your collected and interpreted data. Predictions are made and the optimum marketing message is then delivered to current and potential customers via their most relevant and preferred marketing channel – and at the optimum time. The result is the improved likelihood of achieving higher engagement and greater sales.

As always, you decide what your marketing goals are and the predictive analytic algorithms determine the optimum way of achieving it. And with the advent of big data, you’ll be able to leverage even more diverse data and further optimize your marketing focus and spending.

Early surveys of companies using a predictive analytics model have shown great promise. They include:

– An in depth survey of 123 financial services companies by research firm the Aberdeen Group. They found that the companies utilizing a predictive analytics model achieved an 11 per cent increase in the number of clients over the previous 12 month period.

– A Forbes survey of 306 companies with $20 million or more in annual revenue found that those using predictive marketing initiatives for at least 2 years increased return on investment 86% as a result.

 

Looking to 2016 and Beyond

For 2016 and beyond, we’ll see the continued dramatic growth of predictive analytics marketing. As the design and price barrier lower, more  small and medium sized businesses will enter the world of predictive analysis marketing.

Your competition has, or soon will have, predictive analytics models to attract, retain and grow the most profitable customers and maximize their marketing spending. If your marketing model does not yet include an anlytics model to forecast, determine customer responses, purchases and promote cross-sell opportunities, you’re in danger of falling behind.

Digital loyalty program benefits

Customer Loyalty Going Digital

10 Benefits of  a Digital Customer Loyalty Program

Digital loyalty program benefits

We all have a punch card or two for a coffee place, a dry cleaner or a local sandwich shop safeguarded somewhere (i.e. lost) in a drawer at home. These loyalty cards have proven to be great for local businesses –that is, if your customer can find them! Loyalty programs are excellent at helping you get a better understanding of customer behavior and they provide an incentive to the customer for making continued purchases by offering some form of reward. Consumers carry around a variety of these loyalty cards – however, lugging around a wallet full of paper punch cards can be inconvenient (which is how they often end up in that drawer at home!).

Taking the Loyalty Punch Card Digital

Implementing a digital customer loyalty program for your business allows your customers to use their phone as a mobile loyalty card. They can store cards in a mobile wallet for example like Apple’s Passbook app, which digitally and conveniently houses these cards all in one place, or it can be integrated into a customized mobile application, such as the coffee giant Starbucks, has more than successfully done. Gone are the days we misplace or lose our favorite loyalty cards! In this digital age where 73% of smartphone users are interested in interacting with loyalty programs through their mobile device and over 90% are likely to download a loyalty program’s application, it is time for your business to modernize and upgrade to a digital card.

Why Rewarding Customer Loyalty is Important to Your Business

It costs a business about 10 times more to acquire a new customer than it does to sell to an existing one. What’s more, a loyal customer has a greater lifetime value and spends 10 times more than a new customer. On average, current customers spend 67% more than new ones, so retaining them is crucial. Offering freebies, discounts, and/or other perks and rewards as incentives through loyalty programs is the way to keep them coming back.

Loyalty programs can garner a 12-44% increase in visits and revenue and they are easy to implement, very cost effective, and a tried-and-true reliable tactic in attracting new customers as well as keeping current customers coming back for more. Therefore it is necessary for companies to cultivate their customer base and reward those that give you the most business day in and day out.

The best way to grow your business is to implement a modern digital loyalty program that will allow your business to save money and allow you to better connect with your customers. In addition, your customer isn’t required to fill out an online enrollment form or carry around the cumbersome paper or plastic loyalty cards. Businesses can now reap the benefits of launching a digital loyalty program that makes use of smartphone technology to grow your business.

Digital loyalty program benefits10 Great Benefits to Implementing a Digital Loyalty Program

1. Helps you understand your customers’ behaviors and preferences. When you get to know your customer, you can create custom rewards and alerts, something you cannot do with generic “punch card” loyalty systems. Even advanced points-based loyalty systems are sold as a one-size-fits-all program but that lack of personalization falls short in an effort to speak directly to your customer.

2. Offers an opportunity for increased spending with repeat visits. The more visits a customer makes to your business to earn a stamp, freebie, discount or reward through your program, the more opportunity there is to upsell them.

3. Easy to download and share. The passbook-enabled digital loyalty card can be shared via text or email with friends and family to “team up” and get to their reward faster! Giving people even more incentive to come into your business repeatedly.

4. Provides benefits that a competitor may not offer. Plain and simple, offer something more cutting edge and convenient than your competition.

5. Reinforces preferred customer behavior. Maybe you want to boost traffic at particular times of the day, increase sales of a certain product or service or introduce something new, you can customize your program to nudge loyal customers to adopt this behavior and earn rewards.

6. Test promotional offers and new items. Not sure which incentive will work best or which product, service, menu item will pull best with your customers? Test it out. With a digital program, it doesn’t have to be one-size-fits-all. You can test a variety of promotions, even a variety of creative options, to see which works best for brand.

7. Send push notifications and alerts. Anyone with your loyalty program digital card or mobile app that gets within a certain geographical distance from your business will get a pop-up message on their smartphone notifying them they are nearby one of their favorite stores/places (great for last minute “flash” sales). You can also configure your digital loyalty card in conjunction with Bluetooth iBeacons to send push notifications in-store as well.

8. Digital loyalty programs are trackable and measurable!

• Track customers and their behavior from the activity of cards
• Track activity and effectiveness of different business locations
• Track different marketing messages/creative
• Track open rates, install rates, usage rates, deletions, shares, etc.
• Monitor advertising responses to gain insights
• Measure success of your program and make informed decisions about future campaigns

9. Drive customer engagement in ways other than purchases. Your customers’ activity can be linked to their social media accounts, like Facebook, Twitter, Google+, etc. which means you can give customers a chance to earn incentives through sharing, liking, posting, reviewing and/or referring your business.

10. Digital loyalty programs are more secure. Going digital means your program is more scam-proof than traditional printed punch cards. Less revenue is lost when you can’t cheat the system.

Are you the type of business that should launch a digital loyalty program?

Digital loyalty programs that provide rewards via a mobile device are a convenient and fantastic marketing tool for any small business with local reach. Any brick-and-mortar establishment that relies on foot traffic, from coffee shops and cafes, to bars and restaurants, to salons and yoga and fitness studios, dry cleaners, car washes and more, would perfectly fit the bill and benefit from a program like this. Is it time to take your business digital?

Apple Passbook mobile app

Event Marketing and Digital Coupons Via Apple’s Passbook Mobile App

The Mobile Wallet Can Mobilize Your Business

Apple Passbook mobile app

Looking for a new way to promote your events or offers? How about one that eliminates the need to print flyers and other marketing collateral – an otherwise eco-friendly way to get event information directly into your consumers’ hands? Interested? Then what you’re looking for is access to your customer’s mobile wallet via Apple’s Passbook® mobile app.

Passbook is a standard, pre-loaded app on all Apple iPhones (operating system iOS 6 and up). Android’s version of this app is called PassWallet. According to recent research by eMarketer, smartphone usage worldwide will be at 1.75 billion users by end of 2014! So while many local businesses want to notify recurring clients of an event or special promotion, just think of the reach your event notification could have around the globe!

What makes these mobile wallet apps such as Passbook so unique is that they allow users to store various items such as digital coupons, airline boarding passes, movie tickets, event passes, retail store cards, gift cards, loyalty cards, and more, all categorized in one location and super easy to use. Oh, and they’re paperless too! So guess what? Digital passes, tickets and coupons will be really hard to forget, misplace or lose!

There are a variety of ways a user can add a pass into Passbook—you can do it via mobile apps, emails containing links to the pass, via websites with short links and QR code scanning from off of a Point of Purchase (POP) display, website, social media post, etc. Redemption is just as easy, the user just scans his/her iPhone or iPod touch to redeem a coupon, check-in for a flight, enter a movie or get access into an event. It’s that simple!

In addition to ease-of-use, Apple’s new operating system, iOS 7, now delivers even more unique opportunities because the iOS 7 Passbook app has a QR scanner build right into it! And unlike other QR code scans that often take you to a website to get access to a link to then get to your pass, the Passbook scanner instead loads a digital and trackable pass directly onto the user’s iPhone. This enables yet another another unique opportunity that is giving you the ability to bridge your print with your digital media channels. You can now have direct and integrated communication with your customers from print materials, flyers, POP displays, etc. to your digital channels like a website, emails, e-newsletters, social networks, and much more.

Another very innovative feature, is that Apple’s Passbook mobile app uses location notifications i.e. all passes are time and location enabled so on the day of the event, the pass will appear on the user’s lock screen reminding them of the event. Their smartphone will vibrate or sound to notify them, passing along a gentle reminder: “Hey, there’s an event happening tonight!” Similar to when your boarding pass is loaded in Passbook, and a flight is getting nearer, you get a reminder notification when it’s nearing the time to board your flight. In addition, these location notifications will also pop-up a reminder in the lock screen when the customer/invitee is nearby your location or the event location, offering another reminder that this event is coming soon. What else? You can use this notification feature to also provide any updated information regarding your event. For example, if the date or time of your event changes, perhaps due to bad weather, you can send an event update and a new updated pass for the invitee’s mobile wallet.

The Passbook mobile app provides an innovative and convenient event ticketing experience for your customers. Your attendees can now access their tickets and information easily from their smartphone.

Engaging customers in this distinctive and yet simple way, through the digital invite, opens up a ton of opportunity for restaurants, bars, nightclubs and other establishments that often host events, happy hours, special promotions to bring in foot traffic.

Here’s a quick summary of the benefits of integrating your company’s event(s) with Apple’s Passbook mobile app:

• Convenience for your attendees – Passes are stored in one convenient location, in the invitee’s Passbook app, totally paperless and easily accessible.

• Update notifications – If there are any event changes, your attendees will get a notification and an updated event pass.

 Location notifications – Your event pass will automatically pop-up on the lock screen of the registered attendee’s smartphone when he/she is nearby your location or nearby the event location.

 Easy QR scan for check-in – Each pass contains a QR code. Just scan it with any QR reader to check the attendee into the event and mark their pass as redeemed.

 Event details on back – There are two sides to every pass. By pushing on the bottom right corner of the pass, the digital pass flips over to reveal more event details. Here you can have the date, time, website links, contact information and more for your attendees’ convenience.

• Trackable passes – With the Passbook mobile app, all your coupons and passes are trackable. You can track things like the number of active and inactive passes in distribution (i.e. those redeemed and not yet redeemed), look at month-to-month pass usage and see a comparison month over month, look at active passes by template or different offers/events, and more.

As you can see, Passbook provides a seamless and yet robust experience for your customers, which of course reflects highly on your company event and/or offer.  Even if your event doesn’t require a ticket for access, it is still a very good idea to try this feature for your next event, if anything, for the marketing opportunity and for your customer’s convenience. Including Passbook in your mobile marketing strategy can dramatically mobilize your digital campaigns.

advertising and marketing

Advertising and Marketing: What’s the Difference?

Understanding the fundamentals of advertising and marketing

advertising and marketing

People often get advertising and marketing confused.

The fact is that there is a huge difference between the two terms.

Marketing is the process by which products and services are introduced to the marketplace. Whereas, advertising is the description or presentation of a product, idea, or organization, in order to induce individuals to buy, support, or approve of it. Marketing is the sum of all activities that you perform to get the word out about your business and attract the customers you want. Advertising is essentially spreading the word about what your company has to offer. Advertising is a component, or subset, of marketing.

advertising and marketing processMarketing takes time. It involves understanding who your potential customers are and what they want to get from your product or service. Think of marketing as everything that an organization does to facilitate an exchange between company and consumer. An effective marketing strategy involves use of color, logos, and how your products and services are sold. A marketing strategy creates the perception that you want people to have of your business. Is your company forward thinking, a fun company or a large stable business? It’s marketing that defines your brand and attracts the market share you want.

Advertising is getting the word out about your business, your products and services. It can involve several strategies including newspaper, radio and television ads. On the internet it can include banner ads, posting classifieds, etc.

To market your product or service, fundamentally you must:

– Study your target audience

– Identify their values and needs

If you’re trying to appeal to a quality-conscious demographic, you’d probably want to develop a campaign that showcases your brand as being high end. If you’re reaching out to a younger or more forward-demographic, develop an edgier approach to present the image of your product.

Once your marketing strategy has identified your target audience, you can now focus your advertising dollars on the specific types of media used by that audience to increase your likelihood of successfully acquiring new customers. Print, television, radio and the Internet are common venues that can communicate your brand to potential customers. Social media is also a powerful component of marketing, branding, as well as advertising efforts; proper use of Twitter, Facebook and Google+ (and others) can help spread the word about what it is you have to offer.

In the end, marketing and advertising campaigns are most effective when they are fully integrated.

personal customer data

Consumers Are Increasingly Willing To Trade Data For Personalized Customer Service

Giving More Leads to Valuable Consumer Data

personal customer data

Online shopping is projected to be $226 billion this year — a number that represents seven percent of the total of all retail sales. As online shopping has increased, so has personalization: the capture of personal data. And with it, concerns over data privacy.

Privacy has long been an issue online. But consumers are increasingly willing to trade personal information in exchange for more personalized recommendations and customer service.

In a recent study of consumers, it was found that 85% said they realized that data tracking made it possible for retailers to present them with relevant and targeted content. Most notably, almost half (49%) of those surveyed said they’re receptive to a brand that they trusted track their data in return for a personalized shopping experience such as providing relevant recommendations, targeted offers, and information on future product availability.

And when asked to choose between personalized shopping experiences based on their past consumer behavior, or non-personalized experiences in exchange for having retailers not track their data, 64% of those surveyed said they’d prefer the personalized experience. The same number said they would be willing to have known brands send them text messages to provide personalized offers based on previous purchase history while shopping at a brick and mortar store.

What does this mean for the retailer? Retailers that collect and correctly use personalized content in retail and mobile marketing are more likely to see some real benefits:

consumer data for customer service * Collecting  personal data can help retailers get a stronger start with new prospects by immediately showing consumers that you have information relevant to their interests or needs.

* Personalized data and customer service flatters the customer and make them feel special. Flattering your customers by remembering the customers’ name, behavior, preferences, and information; they feel good about the shopping experience. And when customers feel good, they feel like buying.

* Collecting personal data, allows retailers to offer relevant additional products, services, or content offerings based on the personal data they have.

* Tailoring your message to the recipient has more resonance because it actually means something. Your messages are much more likely to get attention and spur action when you personalize the topic, timing, and content.

* Personalization also makes the conversion easier for the customer. It’s a marketing truism  that the more steps you require the customer to take, the more chances you have of losing them. Regardless of your ultimate goal, people are always  more likely to act when the action is fast and easy and personal.

* Improves lead nurturing in general. When you can personalize content to each person’s interests and behavior, your marketing will make a stronger connection and convert more leads into marketing and sales action. The information you use to personalize content all comes from somewhere in your database that your sales team can also use to personalize their sales calls.

Personalization can differentiate your company as the one that cares enough to listen to customers and deliver the information they want; all while increasing your revenue and close rates, enhancing prospecting results, creating new cross-sell and up-sell opportunities, and increasing customer retention.

But remember that in most cases, less is more when it comes to personalization. You need to engage your customers with information they want. If you do, they are more likely to purchase from you. Bombarding them with unwanted, irrelevant information will soon turn them off and they’ll look elsewhere.