Originally Posted on MarTech Series by Matt Marzullo
The imperative for brands to cultivate proprietary, actionable intelligence has never been more pressing. With multiple consumer privacy regulations from General Data Protection Regulation (GDPR) to Electronic Communications Privacy Act (ECPA) tightening the reins on traditional tools like cookies, the methods to gain insights are narrowing. Accumulating robust first-party data emerges as the cornerstone of every brand’s agenda. One marketing strategy quietly yet significantly impacts consumer engagement and brand loyalty: predictive analytics.
By analyzing vast amounts of data, including past and current trends, browsing behaviors, purchase histories, and demographic details, predictive analytics allow marketers to identify the individuals most likely to respond positively to their products or services. This precise targeting is instrumental in crafting campaigns that resonate with recipients, foster brand loyalty, and encourage word-of-mouth promotion.
First Data is the Best Data
First-party data is collected directly through interactions with a company’s platforms, such as websites, mobile apps, e-commerce, POS systems, or physical stores. This is typically considered the most valuable type of data since it directly relates to the organization’s own audience or customer base. At its core, first-party data applies to that of customers who have and/or do actively engage with companies over long periods of time. Combined with third-party data, this enables brands to identify trends in purchase behavior across scalable amounts of data and populations.
A modern approach is to leverage cutting-edge technology to seamlessly interact with multiple predictive models concurrently. One example is an innovative infrastructure designed specifically for a Domino’s franchise, aptly named “SLICE.” Over 30 predictive models were tailored for each of the eight store locations. The models continuously
analyze transactional data within the database, refreshing insights every seven days. The result? A constant stream of freshly scored customer and prospect data, primed for targeted marketing campaigns.
A comprehensive dashboard empowers account managers, executives, and marketing teams alike to view projected ROI based on individual store locations, leveraging
insights from predictive models. This level of precision enables informed
decision-making to craft campaigns with a high degree of confidence. Unlike traditional approaches, where predictive analytics are often inaccessible to single franchises and campaign execution falls outside the purview of account management, this technology democratizes access. Equipping account managers with the tools to build and project
ROI for campaigns at the single-location level assures that strategies are not only viable but optimized for success. Plus, a user-friendly interface drives down costs, making sophisticated campaigns more accessible than ever.
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The Intrinsic Link Between High-Tech and High-Touch
What can companies do with the valuable combination of first-party data and the ability of predictive analytics to predict future trends? One modern approach is the fusion of physical and digital marketing strategies. Once a novel concept, this is now an essential strategy for businesses aiming to thrive in a consumer market that increasingly gravitates towards online shopping. This integration, coined by some as “Phygital” marketing, represents a fundamental shift in how modern companies approach engagement.
Combining these strategies offers consumers a unified brand experience that is both high-tech and high-touch. Leveraging multiple channels including social, digital, connected TV, and direct mail increases impact and engagement. For example, while some buyers may relish visiting a brick-and-mortar establishment, businesses can elevate the experience by strategically placing QR codes throughout stores to guide visitors to extend their buying journey digitally.
Another example is direct mail. Fusing tangible brand experiences with cutting-edge predictive data analysis is reshaping an often maligned tactic into a precision tool for targeting, engagement, and ROI maximization. Unlike digital counterparts, direct mail offers a physical touchpoint—a branded experience—in what is now a far less crowded space that can be tailored to meet the preferences of individual consumers.
Personalization powered by predictive analytics elevates direct mail from a simple communication method to a critical component of an integrated marketing campaign.
The numbers speak volumes about this strategy’s effectiveness. According to the ANA’s “Response Rate Report 2021,” while SMS text marketing boasted an ROI of 102% and email marketing came in at 92%, direct mail, delivered in letter-sized envelopes, achieved an impressive 112% ROI. When enhanced by predictive analytics, direct mail can outperform digital channels in terms of engagement and response rates.
Future-Proof Your Decisions: Harnessing Predictive Analytics
Personalizing content through predictive analytics helps create highly individualized campaigns that not only capture attention but also build lasting consumer connections. Combining the tactile appeal of direct mail with digital marketing and the precision of predictive analytics is more than just a strategy; it’s a commitment to delivering value to clients and their customers. A comprehensive suite of services, from brand strategy consulting and creative design to web development and digital marketing, uniquely positions companies to integrate predictive analytics into every aspect of their campaigns.
Overcoming the Integration Hurdle
Yet, despite this clear need (and advantage), many marketers struggle to bridge the gap between these vital tactics effectively. The crux of the issue lies in the inherent complexities of managing divergent channels with distinct dynamics. Marketers are
often caught in a web of inefficiency, juggling separate vendors for online and offline marketing efforts.
This division not only inflates costs but also leads to a fragmented marketing supply chain, making it difficult to deliver a unified brand experience. Furthermore, the convergence of disparate technologies, platforms, and data sources adds another layer of complexity, rendering the measurement of ROI a Herculean task.
The ambition to meld all your marketing efforts often encounters the harsh reality of disjointed supply chains. In response to these challenges, the call for vendor consolidation is increasingly compelling. By aligning with a modern integrated partner, businesses can bundle services across the supply chain, leveraging digital marketing advancements to enhance efficiency and effectiveness. Such integration not only simplifies workflows but also paves the way for clearer communication among all stakeholders, ensuring smoother operational flow and, ultimately, a more cohesive marketing approach.
Bridging the Divide
The future of marketing lies in the harmonious blend of predictive analytics with digital and physical strategies. Integrating predictive analytics into your comprehensive marketing approach can ensure that your efforts are truly transformational. Overcoming the complexities of this integration enables businesses to focus on what truly matters—delivering exceptional value to their customers.
