Predictive data: When less is more?

The world of marketing and advertising commitment to a new strategy: predictions from information processing in consumption and interests of customers. Know more about a possible target, it lets focus on what is being offered.

We live in an era where many times people may feel “bombarded” with the huge amount of products and services that are offered from advertising.Today, advertising strategies are focusing increasingly on what is known as “predictive data”, i.e. predicting key information from an intertwining of interests, needs and consumption. The strategy emphasizes avoid “invading” the client with ads that are not of interest to you and offer you a sale of more selective and better chance to arrival.

Predictive data When less is moreAs the statistical acclaimed writer said Nate Silver, every day, three times per second we produce the equivalent of the amount of printed information that can be found in the Library of Congress. Those who know and use the right to filter and process this volume of information techniques have a definite advantage over their competitors.

Predictions: What, how and why?

Given the voluminous amount of information found in the virtual universe (banking, using credit cards, social networks) there is a world of information to be used in understanding and offer products to potential customers. Clearly the big multinationals are not immune to this reality and therefore have implemented systems that allow digest thousands of possible data interbreed with different variables. Today, the term of predictive data is not only used to think possible actions, consumption or interests of a client (or potential customers) but also is key to develop strategies and improve marketing effectiveness to perform, interacting with media advertising or sales channels.

An example of use of predictive data was given in the two presidential campaigns of Barack Obama. The team of advisors of the current US president noted that on the west coast women between 40 to 49 years had a special fondness for George Clooney and Sarah Jessica Parker, and would be willing to pay to meet their idols. Both were key figures at dinners organized by the current US president to raise funds for the elections. An elegant and powerful strategy.

There are three types of predictive models: in advance, description and decision. The first to analyze past behavior of an individual and from there evaluate future reactions, differences and continuities of conduct. Such models can be critical, for example, when assessing the credit risk situation of a person. Instead, the analysis focuses on description models can classify customers into groups and set different targets when a campaign. In this way they can be built networks among numerous customers and a variety of products. Finally, the model focuses on the decision, describes the relationship comes into play before consumption or prior interest of the client and its junction with different variables present, which can be personal or external character including such behavior before given climate.

According to MarketShare, a company of predictive analytics in the United States, there are companies that claim to have improved between 10 to 30% in their advertising strategies. And many argue that “men become habits” and that “we often stumble twice with the same stone.” It seems that the predictions have come to stay.