Predictive Analytics and AI in Marketing
What if you know exactly what your customer needs next week? Next month or even next season? What if you can “predict” how much they will spend on your products or services when the gas price goes up - or down?
The crystal ball of “predictive analysis” helps us see the future - and with AI, we can see the future so much better.
So what is “Predictive Analytics”?
This is something we marketers do on a daily basis - crunching numbers and looking at past data to predict the future performance of a campaign. When you look at the past six months' sales and use this to predict the sales of the next six months, you are applying predictive analytics. When you look at the inventory trends for the past four months to identify the fast-moving stocks and order more of them for the future, you are using predictive analytics.
At Twin Creek Media, Predictive Analytics is how we make all our decisions. Our clients get a high-level view of what worked and what didn't, and our marketing decisions, from design to targeting, are based on these regularly updated insights. Click here to check out some of our key campaigns, where we generated tangible results using the power of data.
The Role of Artificial Intelligence
Chat GPT, Google Bard… AI is a household name today. Tasks that were time-consuming, like proofreading articles or researching keyword trends, can now be done at the click of a button! What’s more, AI is continually updated (or tries to be), meaning (most of the time) the data you get are updated and relevant.
We at Twin Creek Media have been experimenting with Chat GPT 4’s capabilities to analyze data off a spreadsheet and colour us impressed! The latest (paid) version of GPT allows us to upload a document or spreadsheet with all available data, which GPT then analyses based on our prompt.
[Editor's Note] With AI, the possibilities in predictive analysis seems limitless. What's even more exciting is that we are still in the early days - a few years from now, predictive analysis can be as simple as a single-sentence prompt. Imagine the possibilities - specially for startups and small businessess! - Shana Azeem, Social Media Manager, Twin Creek Media.
The results have been quite accurate, and we love how much time this saves us! Disclaimer, though, the results entirely depend on your prompt and the quality of data you submit.
Using AI To Predict Your Audience's Behaviour
Now, how do you marry predictive analytics with AI for audience profiling? Here’s a step-by-step guide:
Data Collection: Gather data from various sources like social media, purchase histories, and customer interactions. Make sure that your data is clean and formatted so that the AI can understand it. Pay attention to data consistency, as this is one of the biggest culprits of data errors.
Data Analysis: Use AI algorithms to process and analyze this data. AI can handle large datasets efficiently, uncovering trends and patterns. There are many guides out there with sample Chat GPT Prompts you can use to get your desired result.
Here are a few that can help:
Chat GPT Prompts for Audience Segmentation
Prediction Modeling: Although AI can do this for you as a part of the data analysis process, if you are a stats whiz, you can go one step ahead to develop predictive models using statistical techniques.
Implementation: Analysis and predictions are great, but don't forget to use these predictions for your marketing strategies. For instance, if your model predicts an increase in demand for eco-friendly products, you might want to stock up and adjust your marketing campaigns accordingly.
Why use AI for predictive analysis?
Two words: Accuracy and Efficiency. AI can be very accurate and really fast with its output - especially when it comes to data analysis. Even if you are a small business with no data team in place to analyze your data, you can easily use AI to generate useful insights that will help you drive tangible business results. AI’s capability to analyze data is a game-changer for businesses without the budgets to use the data they have collected over the years.
Large conglomerates go one step further, using a combination of data, AI, and automation to hyper-personalize their offerings. Think of those customized offers or product suggestions you get in your apps or when you shop online - that is high-level predictive analysis at work!
Looking at the evolution of AI and how fast it’s happening, maybe we will see predictive models that can recommend and implement marketing strategies that evolve along with market changes and changes in consumer behaviour!
Predictive modelling using AI, in its most simple form, can help you predict your customer's behaviour. With a little effort, it can actually help you create highly targeted and optimized marketing strategies to meet your customer's evolving needs! It’s always a good time to start using your data, and if you need some help from the experts with set-up and implementation, Twin Creek Media is here to help!
At Twin Creek Media, we believe in data-driven marketing. Sounds like something you’d like to get started with? Contact us today, and let's chat!