In nearly all markets and all industries today, companies are attempting to use the enormous amount of data that now exists to become more predictive across various business functions.
While there are many ways of using data to become more predictive, there is a perception that most require a high level of expertise in data analysis and a significant amount of technological infrastructure. However, this is not the case.
Using Versium’s LifeData® (containing 800 billion consumer attributes) and data matching capabilities, you can immediately discover new insights about your customer or prospect base and assign ‘predictive scores’ to individuals based on your business’s specific objectives. Whether your goal is to improve conversion or acquisition, decrease fraud or attrition, predictive scores allow you to quickly get answers to make smarter decisions.
Here are five ways predictive scores make you faster and smarter:
1. They allow you to get the answer you’re looking for without having to know the complex math behind it.
One of the main benefits of predictive scores is you don’t need to be an analytics or math expert in order to understand and use them. When you see a predictive score, all of the complex math (e.g. linear regression models, decision trees, predictive algorithms) has already been done, and you are able to immediately work with the intelligence that is resident within the data.
2. They allow you to get immediate insights every time a new lead comes in rather than waiting for third party analysis.
Whenever you get a new lead, prospect or customer you can easily and instantly append (via API) a predictive score based on your specific business objectives. For example, if you sell an ‘eco-friendly’ product, you can look at each new lead’s ‘green’ score to immediately determine the likelihood of each individual to purchase your product. So, rather than spending months building your own analytics infrastructure or waiting weeks for data to come back from a third-party provider, you can get the answers and intelligence you are looking for instantly.
3. They not only tell you the answer the question you’re asking (the predictive score itself) but also explain how and why the score was determined.
A predictive score essentially tells you the answer to a question of probability, for example, how likely is a person to donate to a cause or cancel his or her membership? While the score has value itself, a predictive score also comes with an explanation of how and why it is determined. The added insights into the attributes determining the score allows to you understand the specific reasons why your customers or prospects make certain choices enabling to you to create messaging or campaigns with those factors in mind.
4. They allow you to avoid wasting time and money marketing to prospects who are unlikely to take the action you desire.
Whether your predictive score looks at the likelihood of an individual to purchase, cancel a membership, or become a brand advocate, it allows you to immediately understand who your target audience is. Using scores, you can eliminate costly resources trying to figure out things like… what geographical market should I be selling in, what job title is most likely to be interested in purchasing products, etc. Much of this information is already contained within scores, allowing you to make fast and smart decisions around who to target and where to invest.
5. They allow you to launch specific campaigns around different objectives and audience segments by giving instant insight into the propensity of your prospects or customers to take a certain action.
By assigning scores to everyone in your customer or prospect base, you can improve targeting and understand variations within your audience allowing for improvements in engagement. For example, you may find out that women are much more likely to purchase your product than men, even though the product is used by men. You can expand your customer base by improving engagement with women through more relevant messaging.