Guess Who? Predictive Audience Building Can Help Nail Down Unknowns

Guess Who? Predictive Audience Building Can Help Nail Down Unknowns

28 Oct 2021 Predictive

All CMOs have to play fortune teller from time to time — in determining marketing spend and fighting for total marketing budget. When it comes down to it, the usefulness of any marketing strategy (and the budget that fuels it) hinges on how it impacts sales.

Of course, the new analytical methods for determining marketing spend by channel make forecasting sales easier than peering into a crystal ball.

The analytics on big data (and little data) —and used to set budgets and determine which platforms deserve the most spend for the most sales— includes the same data a CMO needs to implement predictive audience building. Our ability to predict buyer behavior is not only clearer than ever; it’s a great deal more detailed as well. With today’s analytics, every impression gives you more insight into the people who interact with your marketing campaigns, from their age group and location to their interests and the factors that led to their previous purchases.

What does predictive audience building entail?

Predictive audience building is a logical next step. An analysis of your customers’ habits, demographics, and interests and including data on previous purchases can paint a picture of each customer — and predict when they’ll become customers again, what they’re likely to respond to, and which marketing channels work best for promoting a new product.

Simply put, predictive audience building is the way to forecast the sales each of these customers could generate for your company based on their buying and browsing habits.  It’s kind of like having a cork board pinned with pictures and string—as in a detective show—and connecting all the variables and information into a fully-fleshed out person with their motivations and tendencies to buy.

This wealth of data can allow you to pin down certain variables in your marketing strategy, which can help you justify your spend and forecast future sales at the same time. Predictive audience building can reduce or eliminate unknowns, providing you with:

  • The ability to forecast sales from your customers based on what they’re likely to need in the coming months and what would intrigue them.
  • The clarification of which marketing platforms are worthy of more spend because of their efficacy in converting sales and low cost per sale.
  • The ability to calculate more specific price suggestions based on the ROI of your marketing spend, which stems directly from your increased ability to forecast sales.

Having a clearer picture of your audience in turn provides a clearer picture of what your budget should be and what your ROI will be on that budget. Predictive audience building compliments CRM activity and programmatic ad buys, as well, giving you more ability to focus your efforts on the channels that are more likely to have a greater ROI.

It’s also about helping the customer have the best experience.

Predictive audience analysis isn’t just a way to uncloud your crystal marketing ball, though — it helps you control customer experience, as well. Predictive audience building provides you with the tools for personalizing a customer’s experience in a way that will make conversions more likely. Targeting customers with ad buys that are relevant to their tendencies and interests can go a long way toward developing life-long consumer relationships.

Predictive audience building isn’t magic, but the results can make you look like a marketing wizard

Using the predictive capability of analytics can allow you to forecast sales and determine marketing spend to reach a specific sales goal. In the past, we’ve discussed the need to spend for the sales you want, not the sales you have — and predictive audience building allows you to forecast those sales and maximize the effectiveness of your marketing spend.Â

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