Predictive analytics has long been a ubiquitous tool for retail marketers. Predicting customer behavior is a necessary part of any customer loyalty and retention strategy - helping to learn how to engage with consumers and improve their experience shopping with you.
Mobile, meanwhile, has become an obligatory piece of technology. The price of smartphones has dropped dramatically, and they are now readily available in even developing countries. It’s estimated that by 2016, 61% of web traffic will come from wireless devices as opposed to desktop devices. This increase in smartphone usage means that we will see marketers have to refocus their analytic efforts towards mobile, or risk losing their competitive edge.
For mobile marketing, predictive analytics is a big opportunity. Predictive mobile analytics enable organizations to discover the ways that consumers are likely to behave in their store, by looking at data from how their apps are used and finding patterns in how they act. There are a number of different metrics that can be looked at when generating this data, including customer queries, purchase intentions, and consumer sentiment on social media, all of which produce a massive volume of transactional data pertinent to retailers.
There are a number of ways companies can leverage this information. Marketers can focus their marketing and advertising initiatives, looking at how a customer engages with a promotion in real-time to facilitate greater targeting. Using predictive analytics, you can map what your target customer is most likely to do next time they come into your store and the likelihood they will purchase. A customer who is unlikely to do so should require more attention that one who is likely to. While the information gathered is largely anonymous, digital tags enable the creation of a digital dossier in which browsing history can be linked to a particular unidentified individual helping maintain privacy.
Smartphones also allow for metrics that are impossible to establish on desktop. It gives marketers the ability to see ’why’ a customer is behaving in a certain way, instead of just seeing that they’ve done it. This can be seen thanks to ‘user recordings’. User recordings enable an app maker to see a user’s actions on the app in real time. This means that they can pick up on various problems, and establish repeat behaviours that lead either to a purchase, or a rejection.