Marketing Glossary

Predictive Analytics

What is predictive analytics?

Standard web analytics is the study of website data to understand how users are using the site and make changes to optimize their experience. On the other hand, Predictive analytics focuses more on calculating the statistical likelihood of certain key events happening.

Predictive analytics refers to a variety of statistical analysis and modelling techniques that try to predict future events based on historical data.

Predictive Analytics Solutions

In predictive analytics, the following capabilities are generally offered:

Predictive segmentation

Predictive analytics can help identify and create segments of visitors who are more likely to respond in a predictable way to certain events. It does that automatically.

Predictive Targeting:

Provides which experience your visitor is most likely to have a good outcome with. For example, I can offer them their preferred experience by offering them the one they are most likely to complete an objective in, like signing up for my newsletter.

While the individual use of each of these scalability developments can boost your online marketing and eCommerce business management capabilities by automating manual processes, only when both complementary developments are present in an organization do they become true predictive analytics powers.

Predictive segmentation is necessary even with predictive targeting. Predictive targeting only creates insight into which user segments might find specific experiences valuable, but predictive segmentation provides the essential insight into what the best experience should be for each group of visitors. When paired together, you can see that both methods are needed to reach all visitors in an event or campaign.

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