The easy days of digital marketing, when batch and blast emails brought companies oodles of sales, are gone. Increasingly, people are overwhelmed by irrelevant e-mails and direct mail. Studies show that Americans spend 13 hours a week on e-mail and of those emails, 16 percent are totally irrelevant.
Marketers are responding by broadening the consumer data they analyze and applying more sophisticated techniques to that analysis. Recent purchases, shopping carts, and even opened—or unopened—emails leave clues about what interests consumers. Predictive marketing uses those clues to help businesses figure out what customers are going to do next.
AgilOne and Smartzip are both predictive marketing companies that use hard data and scientific analysis to try to engage customers with the right message at the right time.
After online pet medication company PetCareRx started losing customers and saw margins begin to erode, it used AgilOne’s predictive marketing to target customers. The platform identified metrics such as customer lifetime value and average order size, campaign response rates and behavioral segmentation to turn the company around. The result was a 38-percent increase in sales and a 24-percent increase in profits year over year, the companies said. Quarterly customer retention rates also rose in the double-digit range with no increase in spending on the overall marketing budget.
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