The once fringe predictive analytics models are now sweeping through the marketing technology landscape. This smart data gives marketers an edge in today’s world of dwindling consumer attention spans and ubiquitous access to digital channels—channels where many consumers freely give up precious data. Naturally, marketers have been putting this new abundance of data through its paces with predictive analytics.
“I would say more than 80% of the marketing you see today incorporates predictive analytics,” says Dane Atkinson, CEO at marketing analytics company SumAll. “I can’t imagine any [marketing] being driven solely by a manual effort in 10 years. The automation in [predictive analytics] brings so much value and efficiency. Every ad you see, every piece of marketing will have some form of a predictive element.”
Such a future surely appeals to many marketers, especially given the challenges involved in marketing to today’s consumers. But, should this future come to pass—and the trajectory of the adaptation of predictive technology certainly suggest this destiny will eventually manifest—what will happen to consumer culture?
“Short of me being in a subway, I am always online, and always connected. You don’t drive by and see people without their phones out. [This] kind of behavior has made folks have zero patience for their data constantly being a part of their messaging,” says Ryan Luckin, head of marketing at ecommerce triggering solution Bluecore. “[Predictive analytics] is doing very wild things to the consumers that I don’t think any of us predicted when we started using data to empower businesses,” Atkinson adds.
A growing number of consumers expect perfectly tailored experiences from business that have their data. Brands have worked to meet these expectations in a number of ways, not least among them implementing omnichannel marketing strategies. However, leading omnichannel brands continue to set a precedent for tailored experiences. In turn, the consumers who covet these experiences continue to grow in both number and power.
“Instead of having an ad that’s relatively specific, [these consumers] want everything served up perfectly at all times. Their tolerance for generalization is really low. This puts an additional stress on companies to answer questions before they are even asked,” Atkinson explains.
Brands that aren’t feeling these pressures now, certainly will. Here are a few ways marketers can prepare for this newer, more data savvy breed of consumer.
Be as nimble as possible
The marketing calendar remains a staple in many businesses. Such organizational practices are essential for keeping budgets in line with long term execution goals. However, today’s consumers move fast, and the world moves fast around them. Marketers must move just as fast if they aim to keep pace with consumers’ shifting preferences.
“Some businesses still plan 12 months ahead in their marketing calendar. You just can’t do that anymore. You have to keep up with events that are happening in your industry, even from competitors, and have to be able to change your marketing strategy on the fly,” Luckin says. “Organizations have to become more nimble and have to get better at aggressively using data.They have to get better at adopting a philosophy of testing and implementing as opposed to these fixed campaigns that are planned 12 months in advance that eight people in the organization have to approve.”
Prioritize potency over frequency
Too much of anything can be harmful. Marketers know this only too well. Marketers should opt for quality over quantity. “I would like to live in a world where I get less touchpoints, but more potent touchpoints. I think predictive analytics is a good lever that you can pull if you have data about your customer that you can use,” says Fayez Mohamood, co-founder and CEO at Bluecore.
Respect consumers’ privacy
Though many consumers have grown comfortable with data-enhanced marketing, that doesn’t change marketers’ responsibility to protect consumer privacy at all costs. “ Predictive analytics can still be drawn significantly from first party data, which generally provides privacy protection through direct engagement with marketers,” explains George Leon, SVP of media and account management at direct response agency Hawthorne Direct. “Third party data companies are being careful not to share too much private information and are using clustering to provide consumer indexing.”
