By Artun, Omer; Levin, Dominique

"Make customized advertising a truth with this useful advisor to predictive analytics Predictive advertising is a predictive analytics primer for agencies huge and small, supplying useful counsel and actionable techniques for enforcing extra custom-made advertising instantly. the promoting paradigm is altering, and this ebook offers a blueprint for navigating the transition from artistic- to data-driven Read more...


Make customized advertising a fact with this functional advisor to predictive analytics Predictive advertising and marketing is a predictive analytics primer for firms huge and small, delivering practical Read more...

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It will hopefully give you more confidence using its outputs. You can safely ignore this chapter and jump to Part Two of this book. Knowledge about predictive analytics is not necessary in order to practice predictive marketing. What Is Predictive Analytics? Predictive models are used in many areas of business and everyday life including politics, fraud detection, or risk modeling, such as when calculating your credit score. For the purpose of marketing, we are looking to use advanced math in order to predict individual customer behavior and to group customers into the most actionable and meaningful ways.

This was a big breakthrough because every customer saved or reactivated reduces Mavi’s need to acquire new customers. Mavi today is running more than 80 different predictive marketing programs in a year. Collectively, these campaigns helped add 7 percentage points to Mavi’s overall revenues in the first few years, which is a huge sum on a dollars and cents basis. Wikipedia reports that Mavi revenues in 2014 were $747 million, so that would be an incremental $52 million. Mavi is still finding new ways to increase customer lifetime value, and with every campaign launched this number is pushed up higher.

As a result, revenues increased by 12 percent. There is no limit in the number of campaigns that a company can develop. Mavi, the mid-market retailer we discussed earlier, has developed over sixty individual campaigns, using predictive analytics, gradually increasing revenues and profitability. New Technologies Are Available to Make Predictive Marketing Easy So why are all marketers’ not using predictive marketing techniques already? Until recently the technology needed to collect, analyze, and act on large amounts of customer data for hundreds, thousands, or millions of customers was inaccessible to most marketers.

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