Imagine you’re meeting with your CMO, and she mentions that she’s been hearing a lot of buzz about ‘Predictive Intelligence.’ She confesses that she doesn’t fully understand the term, and asks if you would explain what it is and how your brand would benefit from using it.
How would you respond? If you’re concerned there might be some awkward silence or guesswork involved, read on. You’ll be pleased to know that it’s a very simple concept and an unbeatable way to deliver great customer experiences.
For starters, Predictive Intelligence goes by several names, most notably Predictive Analytics and Predictive Recommendations. Each has a similar meaning—for our purposes, we’ll use Predictive Intelligence.
Predictive Intelligence is a method of delivering experiences unique to each individual. It enables marketers to observe customer behavior, and with every action taken, build a profile of customer preferences. That information is then used to deliver content specific to each customer in real time—across any web-based channel like the web, email, mobile or even a call center.
Sounds like personalization, right? It is, only better. That’s because Predictive Intelligence uses algorithms to deliver content based on estimates of what the customer wants or needs. It actually anticipates the intent of the customer—then provides a unique recommendation based on what has been observed.
Best of all, Predictive Intelligence is proven to drive key business results. Benchmark surveys show it lifts website revenue by 10 percent, email click through rates by 35 percent, and email conversion rates by 25 percent.
Room & Board is a great example. The company—which offers modern furniture and accessories—sought to further differentiate its customer experience by making its e-commerce site interactions more like its in-store experience. Predictive Intelligence enabled the company to enhance its digital channel by taking advantage of customer traffic data and predictive analytics to suggest additional purchases in near-real time. The results? An astounding ROI of 2900 percent, a payback of two months, and an average annual benefit of over $2.7 million.
Here’s how it works.
Predictive Intelligence enables marketers to deliver highly personalized, exclusive experiences for each customer by observing the actions they take, asking questions, and anticipating wants and needs. It’s as simple as data in, content out.
In addition to observed behavior, Predictive Intelligence equips you to gather explicit data provided directly by customers or their actions. Whether it’s provided digitally through a preference center—or gathered from POS data—it provides insights into their interests, preferences and needs.
What happens next is where the real magic occurs. The data you’ve gathered about each customer is then used to deliver personalized content in real time across channels. Sophisticated algorithms make decisions and recommendations based on implicit and explicit observations, and then automate the delivery of content. With every interaction, the algorithms ‘get smarter,’ providing even greater opportunities for 1-to-1 personalization for each individual.
For example, suppose someone purchases a digital camera from an online retailer. Predictive Intelligence would detect the sale, and then automatically send an email suggesting they consider accessories like a bag or spare memory card. However, not just any bag or card. The Predictive Intelligence engine would provide recommendations based on the model purchased and other key attributes, as well the behaviors of other customers who bought the same item. If a different camera had been chosen, the email would offer the appropriate recommendations. In either case, the marketer would only have to create one email template. Predictive Intelligence does the rest.
Predictive Intelligence represents a tremendous opportunity to drive 1-to-1 personalization and scale your marketing efforts. It will not only help you meet your revenue goals—it will deliver exceptional experiences your customers are sure to love.
Be sure to check back soon for part 2 of this series, Behind the Scenes: How Predictive Intelligence Drives Business Goals and Delivers Exceptional Experiences.