When trying to understand consumer buying habits in order to improve customer engagement many businesses will turn to tools available such as predictive technology. However, utilising these tools don’t always harbor the best response.
What is predictive analytics
Predictive analytics is the practice of extracting information from existing data in order to determine patterns that lead to predicting future outcomes and trends.
The disadvantages of predictive analytics
The information gathered by predictive analytics is always beneficial. All customers are different and it is the understanding of their differences that will help to encourage customer engagement. For example, for a promotional voucher company predictive analytics may pick up data of a passing customer looking for a spa experience within a certain destination, this would then prompt the company to continue sending direct mail to this customer on this one location without fully understanding the customer’s’ needs. It has been stated that using predictive analytics is flawed when you use it as a basis for your decisions with the expectation of 100% accuracy.
The focus of proven behaviour as opposed to presumptions.
Understand your customer’s individual needs
When trying to create the best direct mail campaign it is easy to forget what really matters and that is understanding how individual people work.
People appreciate when their needs and requirements are recognised, the latest technology allows this to happen for brands when interacting with their customers. However, many predictive analytical tools only give an approximation or estimation of what a customer wants.
Listen to your customers
It is of the utmost importance that you listen to your customer and understand how their buying habits could lead to other needs that aren’t directly related to their previous purchase. For example, a loyal bank account holder who has had previous accounts including junior account, student account, a graduate account and is currently onto the general current account has also been recently searching for mortgages. Instead of offering her the standard bank credit card which would be normal protocol for a customer of this customer background, why not offer a meeting with a mortgage consultant and add real service.
At Absolute DM we love good direct marketing! Our philosophy is to help in the development and delivery of successful marketing and promotional campaigns for our customers, using an honest and open attitude, creating some great campaigns and ultimately improving marketing efficiency and return on investment. Need help with direct marketing? Contact us today!