What is Predictive Marketing?

24 Feb 2023

Predictive marketing is a type of marketing that uses a large amount of information to predict customer behavior and needs accurately. It involves the analysis of all data to determine the best and most effective version of the marketing strategy. 
Based on a client's past shopping experience, marketers develop marketing strategies. Therefore, you can create more effective personalized ads in the future that will increase conversions. By forecasting correctly, you can also reduce customer churn and increase demand for your products or services. Stand out from the competition and stay ahead of the game by doing this.
Many famous companies have used predictive modeling in marketing for years because they have seen effective results. When analytics are adequately conducted, websites can increase their customers and orders. A business owner who has mastered predictive marketing can anticipate their target audience's needs and keep up with all current trends.

How does predictive marketing work?

Predictive marketing analytics requires external and internal data. The specialists you hired engaged in a set of external information. The company itself collects internal data. The analysis system is to use the customer's purchase history and demographics. This allows you to predict the actions of a potential buyer in the future, providing him with a product that meets all the requirements.
Each new purchase is shown in the website's overall conversion rate, allowing for a more detailed analysis. The marketer keeps track of the data displayed in the sales funnel and the actions the customer most often takes before buying. Compiles a predictive marketing model and a detailed list of what needs to be changed or removed on the company page.

There are three main forecasting models:

Cluster model

It is responsible for analyzing past actions of the client associated with the brand or company.

Propensity model

It allows estimating with what probability the client will make a purchase of a product, choose another one or go to the next page.

Recommendation filtering model

It means analyzing the history of all past purchases of the clients and developing your strategy to attract them.

Companies often work with a specialist who determines the correct type of predictive marketing technology and trains their employees. It is more convenient to use this method since making an accurate analysis without prior preparation and special knowledge is quite tricky. By separating duties, predictive analysis is sped up. The invited specialists complete all technical work. They then provide all the necessary information to the marketing team, which is already working on the marketing strategy for the company. As a result, entrepreneurs have new opportunities to promote and develop their businesses.

Two successful examples of predictive marketing


A good example of predictive modeling in marketing is the personalization of each user's preferences on the Amazon website. The page analyzes all your previous purchases and viewed products. Based on all this information, a forecast of possible future client purchases is made. After that, everyone receives recommendations from the website for purchasing certain goods.
The frequency of purchases determines the accuracy of this type of forecasting. Amazon has been around for a long time and has a vast customer base. Marketers analyze the products you viewed and purchased and the time of the year when you were interested in these products. Therefore, the page offers the most accurate recommendations, encouraging the purchase. The Drupal eCommerce development team can set up the system similarly for every website that needs it.


With a large user base of varying preferences, the Netflix platform uses predictive marketing analytics to recommend additional content that may interest them. 
Another example is the evaluation of potential customers. Many companies use automated social media applications. They analyze customer data and determine the optimal time to publish a product or service on a page. Some programs can make even more detailed predictions by checking text or photos. Popular social networks like Facebook or Twitter offer content analysis tools. These platforms use algorithms to determine the best content option. They also monitor users' website interests and provide relevant advertisements.

Advantages and Disadvantages of predictive marketing

There are many statistical methods used in predictive analytics. Learning how to use the information received after the analysis effectively is crucial to follow the behavior patterns on your website. This will help your company or brand significantly increase conversions, get many performance optimization benefits, and perform data mining without hassle. Let's take a look at the main advantages of predictive analytics to put everything into practice in the most profitable way:

Advantages of predictive marketing

  1. Scammers are eliminated
    Identifying suspicious patterns and fraud on a website is crucial for predictive analytics marketing. The importance of cybersecurity has grown among entrepreneurs in recent years. Therefore, detecting and eliminating threats is essential for improving the operation of the page.
  2. More effective marketing strategies
    Many marketers know that success and competitiveness depend on knowing your target audience. It is worth learning to observe customers and understand their preferences. The main thing is to send a correctly composed advertising offer at the right time.
  3. Making weighted decisions
    Some companies take risks by completely changing their strategy and unique selling proposition. Learn how to use your data to find touchpoints with your customers. Such a big step will lead to immediate success with the right predictive marketing analytics.
  4. Improved efficiency and reduced turnaround time
    Predictive analytics will accelerate the growth rate of any company. Do not be afraid of change because only this will help develop your business for the better.

Disadvantages of predictive marketing

  1. A costly process
    Data collection, detailed analysis, and storage often involve costs for business. There may be an additional investment required to hire and provide a qualified specialist with the necessary tools.
  2. Keeping data insecure
    The regular generation of a large amount of important information requires finding ways to store it safely. Even the most prominent companies can find it challenging to keep the collected credentials updated and secure.
  3. Concerns about user privacy
    Customer personal data is undoubtedly a significant component of any predictive marketing analysis. Unfortunately, there are cases of leakage of this information.
  4. Synthesis of data
    To collect the necessary information, we use surveys on the site, mailing lists by e-mail, and special forms that customers fill out. During this process, some information may be distorted and complicate further analysis.

 Modern Challenges with Predictive Marketing

In recent years, predictive analytics has become very popular. It allows you to effectively and safely predict the likelihood of customers buying a particular product. In implementing this type of analytics, you may encounter problems and difficulties.
Without first hiring experienced specialists, the analysis of territorial boundaries will be a challenge for you. Workers who understand Python, R, or statistical modeling are needed to solve such difficulties. Issues can also arise with the introduction of new technologies. Users don't like to take extra surveys or click through to pages to make it easier for you to do your analysis. Unfortunately, traditional analysis tools are not enough for detailed predictive analytics. It's better to embed tools in an app or website, and people will be more willing to take the action you want.
Some analytics limit the ability of customers to take action on the website. The client has to open several tabs to satisfy their needs, ultimately losing interest in your product. Many companies use intelligent workflows embedded in applications. This method allows users to perform the necessary actions without spending extra time.

The Future of Predictive Marketing

When innovative marketing first appeared, it was in demand among companies with significant financial opportunities because special skills and additional data were needed to create AI/ML models. Now it is becoming more democratic and allows even tiny brands to use this type of analytics. Predictive models are becoming more self-sufficient, so marketers are free to use many tools. This advancement also positively impacts the ability to conduct analysis using a minimum amount of data. Many professionals try to get access to all marketing strategies. It will be possible to create and run all the necessary forecasts in one application to simplify clients' user experience. The future of predictive marketing is already becoming available for every company size! Did you know that the Drupal content management system makes it easy to implement predictive marketing for your business? Let us know if you are ready for predictive marketing analytics!