DIGITAL AGE MARKETING - USING PREDICTIVE TOOLS TO ENHANCE SALES
When we talk about data driven marketing, the first hint is the process of using the data in order to predict buyers preferences and to serve them with appropriate assortment selection... This is how Amazon and many other online retailers are operating.
Data driven marketing is also when social networks, like Facebook or Instagram are selling data to advertisers, so they can have a control over targeting potential buyers. This practice proved itself as very successful and it is already considered to be a mainstream model when it comes to online marketing.
However, data driven marketing in connection with risk management we are talking about, can be something totally different, but equally exciting.
If we focus on the single Real Estate business operations and assume its financial database is part of a sophisticated digital model, with predictive analytics included, we can see that for such a company, realistic possibility could be to adjust its marketing activities to anticipated risk developments. This can help the marketing department to use the advantage of risks forecasts in order to adjust its new clients targeting and message controlling for existing clients.
In order to illustrate this topic, lets say a Real Estate company, by using predictive tools, is able to anticipate increased risk for its regional investments, respectively expected increase of equity yield... The rising equity yield is not something the investment was based on, as the initially expected selling yield was much lower. Combining long term forecasting with short term risk warnings predictive tools, the company would be able to detect this change in due time and this would be an early signal to sell the investment.
As in the present the equity yield is still quite sufficient, the company is still able to prepare the ground for the sale, even before the actual decision is officially announced. It is able to prepare the trade on the current conditions, with structured messaging and additional marketing focus on the area, while the assets are still attractive and therefore saleable on lower yield basis. In fact, the first step could be also indirect selling efforts with intensified content marketing.
Or another example... if the company is a co-working space rental, with ability to predict the vacancy rates, predictive analytics are enabling it to increase targeted social media marketing for attracting new clients.
This mechanism can be used for any of the predictive risk areas and implemented in any of the marketing efforts companies are engaged in. Instead of making marketing campaigns, which are based on long term strategies and short term subjective risk assessments, data based approach allows fast management and selling efforts consolidation in real time, based on objective data.
Data driven risk companies can, not only be a step ahead of the competition when it comes to business decisions and risk mitigation, but can as well use that information in order to navigate the market in a way, which will bring them the optimal financial benefits... Using the predictive analytics forecasts in marketing, represents the practical tool for converting the overall competitive advantage in the market.
Talking about competitive advantages for data driven companies, this fact is for sure something to pinpoint to shareholders and investors. Not only that data driven companies are always a step ahead and are able to benefit from it in real time marketing efforts and transactions, but this innovative approach is without any doubt going to be reflected in their market value and attractiveness for equity investors.
This shows how important it is to take care that investment in digitalisation and data driven operative systems is followed by structured marketing and PR approaches. The top and the mid-level management have an opportunity, grounded on a data based risk assessment, to make a right strategy and lead the company into the optimal direction. Being a step ahead of others ensures competitive advantage only if we are able to channelize it if we are able to actually take a business use out of it and communicate it properly to our environment.