Why Manufacturers Need Predictive Analytics for B2B Sales & Marketing

Becoming customer-driven isn’t easy, especially in manufacturing. As sales and marketing strategies evolve, the ability to prove and predict sales and marketing performance is absolutely vital.

At the same time, manufacturers with a large customer base and expansive product range have huge untapped potential to increase their customer equity. Such organisations often have millions of pounds of revenue hidden in their own internal customer data.

This is a continual source of frustration for business leaders as they seek to unlock that hidden revenue. Until now…

Enter predictive analytics.

Manufacturers are discovering they’re especially well-placed to capitalise on predictive analytics, whatever their stage of marketing maturity.

BrightTarget is proud to work with some of the world’s leading global manufacturers and ambitious SMEs with rapid growth potential. Our predictive platform consistently identifies millions of pounds of untapped revenue potential across three main areas.

Let’s dive in.

1 – Maximise customer growth

Global manufacturers with large numbers of customers and products have a problem – but where there’s a problem there’s an opportunity.

Right now, you’ve got loads of different routes to market but no single understanding – no way to connect those disparate streams of information. Each product, customer base and channel operates in isolation, more or less. For most manufacturers, the “white space” available for profitable cross-sell and up-sell is never fully exploited.

BrightTarget’s predictive marketing platform gives you that bird’s eye perspective. Combining data from all your internal customer data then enriching it with external data sources, the platform creates a single view of customers and prospects.

BrightTarget Data Enrichment

Single Customer View & Data Enrichment

By analysing your historic sales data and intelligently segmenting all of your customers based on behaviour, firmographics and other publicly available business signals, BrightTarget can accurately predict what each customer will do next. Essentially, our platform tells you how much your customers will spend and how likely they are to up-sell/cross-sell and on which products.

This is more than simple product recommendations. It goes far beyond the Amazon previous purchase model – ‘people who bought this also bought this’ – to consider many other factors about the business. It automatically detects unserved needs in your customer base.

By combining the above with Customer Lifetime Value (CLV), you can develop laser focused, highly personalised cross-sell campaigns or account based engagements depending on the future potential value (margin) of that customer.

Plus you could target specific customers with specific products to help with new product launches or to sell surplus stock.

BrightTarget in action: global scientific equipment manufacturer

Thanks to a recent merger for this global manufacturer, BrightTarget detected extensive cross-sales opportunity worth £69M over two years. Based on its conversion rate of 3.8%, this represents £1.3M in additional annual revenue.

2 – Win more customers

Consider two approaches to winning more customers: identify new addressable markets to sell your product into, and improve conversion rates within those markets. Predictive analytics does both.

BrightTarget’s platform analyses millions of data points to understand at a micro-level what constitutes your addressable market.

This goes beyond the basic lookalike data profiling most manufacturers use (industry; location; size; etc.). Instead, you get a sophisticated ideal customer profile incorporating deep understanding of the hidden signals that drive conversion. You know which new markets you should target with which products, essentially.

Then there’s predictive lead scoring. Sales and marketing misalignment is usually a big issue for manufacturers. Poor quality leads mean inefficient, ineffective sales functions with poor conversion rates, which is exacerbated over manufacturing’s usually-long sales cycles.

Predictive lead scoring solves the problem by leveraging historic conversion data to accurately predict which leads are most likely to convert in the future and what their total lifetime value will be. Those leads are then ranked in priority order so you can focus activity on the highest-value and most-likely-to-close leads.

This is a great way to prioritise inbound requests for quotes, demos or samples, so your stretched sales resources can avoid ‘tyre kickers’, efficiently pick the ‘low hanging fruit’, and work harder on the ‘golden nuggets at the top of the tree’.

BrightTarget Opportunity Scoring

Opportunity Scoring

The sales function becomes more efficient, with higher conversion rates and less time wasted. Plus you can optimise your channel strategy because you know which leads to send to sales and which to nurture.

So overall, predictive analytics identifies the right leads for your business, and empowers you to move them through your sales cycle more efficiently so you secure more customers.

BrightTarget in action: global high-tech manufacturer

BrightTarget helped a leading global high-tech manufacturer attain a 105% increase in suspect-to-prospect conversion rate, 66% increase in conversion-to-opportunity conversion rate and 3.3x revenue increase from marketing generated leads. 

BrightTarget in action: global scientific equipment manufacturer

Based on the initial predictive opportunity assessment and a very conservative 1% increase in conversion rate, focusing resources on the highest predictive lead score category alone would secure 120 net new high-value customers generating £1.4M incremental annual revenue.

3 – Retain existing customers

Innovation in manufacturing has traditionally been the driver for business growth. When products are the heart of your business, it makes sense that taking new products to market is your primary focus.

While product innovation will always be central for manufacturers, customer-centricity is critical. B2B organisations as a whole, but especially manufacturers, are transforming their business strategy to become truly customer focused to drive retention, build loyalty and optimise the customer relationship.

Predictive platforms like BrightTarget play a vital role.

BrightTarget looks at all of your customer data to form a complex understanding of why past customers have left or become inactive, and which signals they give before they do. The platform then leverages this understanding to predict which current customers are most likely to churn or require re-engagement with enough notice to take action.

It then ranks your customers by churn-risk next to future lifetime value, so you can focus your re-engagement activity on the highest value accounts most at risk of leaving to maximise customer equity and focus your sales and marketing resources.

BrightTarget Churn Reduction

Predictive Churn

BrightTarget in action: global scientific equipment manufacturer

A conservative estimate of a 1% retention rate increase across primary leads would prevent churn of 120 high-value customers worth £11.5K annual spend, generating £1.4M additional annual revenue.

Overall this global scientific equipment manufacturer is looking at a cumulative benefit of £14M potential additional annual revenue using BrightTarget.

Predictive analytics: the future for manufacturers

Predictive analytics drives competitive advantage for forward thinking sales and marketing leaders across a range of industries, especially including manufacturing.

As the Forrester Q2 2017 Predictive Marketing Analytics Report observes, “adopters are seeing their efforts turn into real, measurable results”. The report especially highlights BrightTarget for its focus on Customer Lifetime Value and “straightforward, elegant UI”, making it a clear choice to “drive sustainable business growth” and “drive revenue across the entire customer lifecycle” for manufacturers.

Download the full report here to explore predictive analytics in more depth. To discover how predictive analytics could work for your organisation consider the BrightTarget predictive marketing accelerator to quickly prove the ROI potential of predictive using your own data and business model. This unique approach means you can start to see the value of predictive with minimal risk and investment.

Forrester Wave™ Report:

Predictive Marketing Analytics For B2B Marketers

The report contains:

  • Complete vendor evaluations, including current offering, strategy and market presence

  • An overview of PMA trends and client feedback

  • Detailed analysis of how PMA solutions help B2B Marketers

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