What is Predictive Modeling?
For many marketers who focus on lead generation, their planning and strategy are centered around reflecting on past campaign performance. Oftentimes marketers will analyze data such as clicks, likes, and shares, and then apply “what worked” toward the next campaign. While retroactive campaign building is a data-informed way to market and generate leads, it’s often a trial-and-error process.
What if there were a way to proactively test certain marketing efforts in real-time based on your previously collected data and audience information? Luckily, with certain advanced lead generation software and management systems, many marketers are now able to do just that through utilizing predictive modeling.
How It Works
Predictive modeling, in its most simple form, is a process where campaign decisions are influenced based on predicted outcome forecasts. Through this process, a model is built using algorithms and it shows marketers what is most likely to happen depending on different inputs.
For many entrepreneurs or lead generation companies, this process can seem impossible to achieve without a data analyst on staff. However, with the help of advanced lead generation software that is able to aggregate and import key data points into a predictive algorithm, many marketers now have a reliable solution that is able to provide them with insights of what the future may hold.
There are many different variables that go into successful marketing, and even more so when it comes to predictive modeling. Small considerations like approaching a customer during a certain time of day (also known as time series forecasting) and larger ones such as demand forecasting and regression analysis are all correlated to give lead generators a comprehensive outlook on how to forecast each potential campaign.
Predictive modeling software does the work of a whole team of analysts. From data mining to identifying important sales patterns, your lead generation process can be automated based on the data of previous conversions and buying patterns.
A major goal of many lead generators is to closely and entirely understand the behaviors of their customers and target audience. Standard marketing analytics provide insights on initial clicks and calls, but what about the steps that were taken for that customer to become familiar with that brand? Predictive modeling builds bridges between buyers and marketers. It also uncovers the potential of certain data-driven decisions that surround the details in planning the very start of a buyer’s journey.
Because predictive modeling works by machine learning algorithms processing mass amounts of data, organizations understand what kind of behavior is normal for a customer, and what isn’t.
What’s To Come
According to recent Forbes finding, companies who implemented machine learning into their business practices gained $1.2 trillion more than companies who didn’t in the last year. While 2020 has been unpredictable at best, now is the time to make room for certain solutions and technological advancements so that you can begin to better understand what is in store for the next year.
For marketers who want to start planning for the future of lead generation and begin making data-informed decisions, we encourage you to learn more about LMS SYNC—Phonexa’s lead management software platform that offers predictive modeling, analytics, and more!