You’re all experienced and well-versed marketers… so I’m not going to preach to the choir about segmentation or predictive data. We all know how important these two things are in business and marketing. What we might NOT all know is that by using the two in a combined approach, it is possible to shape the future direction of your business to match your marketplace much more effectively.
Segmentation is the art of defining key ‘groupings’ within your target audiences and stakeholders, for your organisation. It’s a crucial task for any modern marketer, and is aided greatly by accurate and plentiful data about said target individuals. That’s why these days any savvy business operator or management team will invest in CRM, analytics and marketing automation systems. There is a strong argument that businesses with these systems and processes in place will outcompete their competitors through greater understanding of their customers and a better business position because of it. It’s hard to counter this argument.
The only factor that seems to be able to properly counter this argument is that of predictive analytics. The ability to not only understand a current business position, but predict the shape of it in the future is a game-changer. Many business leaders often wear the title of ‘pro-active’ as a badge of honour – but this is generous at best. Without a strong and reliable predictive edge to a business, the segmentation work carried out to understand and tackle winning customers will only be retrospective and reactive at best.
The simple truth is that by combining predictive data analysis with any organisations segmentation work, a stronger business will result. A business that not only looks backwards to learn from its past interactions with customers, but that also looks forward with the most accurate predictions available – all based upon hard data science. Not opinion, or gut-feeling. It is a common flaw for business leaders to operate via ‘instinct’ or ‘supposition’ – citing ‘experience’ as the justification for their actions. Whilst experience can work wonders, practical processes like segmentation can split up a mammoth market into manageable chunks. Segmentation underpinned by predictive powered analytics means that a business can operate tackling these ‘chunks’ scientifically, from hard factual information. It’s a difficult combination to beat when applied professionally.
Remember this the next time you think ‘subjectively’ about the future direction of your business!