Predictive marketing helps you find buyers faster. Here are 5 signals that indicate that you should move beyond guesswork.
Baseball legend Yogi Berra once said: “Its tough to make predictions, especially about the future.” That was over 40 years ago. When SolarWinds, Neustar, SmartBear and others needed help identifying buyers among their stream of incoming leads, Mintigo used predictive marketing to take on the challenge and help them predict who is going to convert.
SmartBear called it “The Mintigo Challenge”. Mintigo had to predict which leads that were generated in 2013 were going to convert in Q1 2014. Results were phenomenal—Mintigo identified 80% of leads that were converted. Overall, Mintigo found that focus helps—80% of the revenue came from 27% of the leads, and 95% of the revenue came from 40% of the leads.
Predictive marketing can give any company a competitive advantage, but how would you know that it’s time for your organization to get the most value out of Predictive Marketing?
Here are 5 signs that will help you.
1. Your marketing efforts do not convert to revenue
You are attending industry trade shows and your content and promotion are generating a lot of leads. However, very few of these leads actually get converted to sales. You’ve tried nurturing but still, nothing moves the needle.
Predictive marketing can help you optimize your marketing efforts and identify which campaigns and tradeshows are bringing in buyers, and which ones just create noise in the system. Predictive marketing will also help you prevent spending time and money on nurturing leads that will never bloom into a deal.
2. Your CRM and Marketing Automation data are weak
One of the problems that most companies are facing is lack of relevant data. If you are selling an online marketing management tool, don’t target companies that never use PPC. PPC spending data, however, is hardly available.
By mining data from the web, Predictive Analytics identifies thousands of variables that let you enrich your database with the information that is most valuable for your product. Whether you need data on companies that use PPC, Salesforce or cloud storage, it all exists on the web. Using sophisticated data mining algorithms it can be extracted and put to use.
3. Your CRM and Marketing Automation data needs cleansing
You may have spent years generating leads and collecting a sizable database. However, marketing databases typically decay at a rate of 30% per year. People change jobs, or change organizations; companies go bust, while others grow.
Cleaning up your database may, by itself, increase conversion rate significantly. It will stop clogging the system with leads that are no longer valid and will allow Sales and Marketing to focus on real prospects.
4. You have a hard time matching prospects with products
Matching the right prospect with the right product in your portfolio—both in nurturing and in the sales process, is key for closing deals. However, unless leads specifically indicate what they are interested in, marketers find it challenging doing it for them.
Predictive marketing uses machine learning to segment leads and find the product with the best fit for the prospect. This can help avoid nurturing leads with irrelevant content, or funneling leads to wrong sales teams.
5. Your lead scoring does not accurately identify buyers
Lead scoring can be a powerful tool to identify sales-ready leads. However, two main challenges prevent many scoring models from successfully identifying buyers. First, most companies do not have robust and clean data in their marketing database. Second, traditional scoring models are based on rules-of-thumb and assessments rather than sound statistical modeling.
Predictive Marketing solves these two challenges. First, it enriches and cleans your marketing database and second, it uses predictive analytics to build your scoring model. The result is better scoring, which accurately predicts leads’ propensity to buy.
Predictive lead scoring is a powerful tool that can help you identify buyers. If you’ve seen one of these signs in your organizations, perhaps it’s time to move beyond guesswork and consider boosting your marketing with the power of predictive analytics.