Marketers & Analytics: Best Uses of Predictive Analytics
According to Struto, it costs six to seven times more to acquire a new customer than it does to retain an existing customer. With growing awareness of the value of customer retention, more companies are shifting their focus from new customer acquisition to strategies that foster customer loyalty and retention. One of the most effective ways to boost customer retention and increase loyalty is to create a positive, engaging customer experience, and that’s where predictive analytics comes in.
Companies use predictive analytics for detecting fraud, reducing risk, optimizing marketing campaigns and improving operational processes, such as managing inventory and setting prices. It enables companies to gain a competitive advantage, discover new product or service opportunities and gain a deeper understanding of their customers. By leveraging predictive analytics, companies can predict problems before they occur and take action to meet customer expectations to reduce churn.