Predictive Analytics and Funnel Analytics: A Unified Approach
Predictive analytics and funnel analytics are closely related and often work hand in hand, especially in the context of understanding and optimizing customer behavior in digital environments.
According to a study by McKinsey & Company, businesses that use advanced and funnel analytics to improve their customer journeys achieve conversion rates that are 5-15% higher than those that don’t.
The Power of Predictive Analytics in Funnel Analysis
Predictive analytics is a type of advanced analytics that uses machine learning and statistical modeling to predict future outcomes. It is increasingly being used in funnel analytics to help businesses understand and improve their customer journeys.
Here are some of the ways that predictive analytics is changing the future of funnel analytics:
- Identifying and targeting at-risk customers: Predictive analytics can be used to identify customers who are at risk of abandoning their shopping carts or churning. This information can then be used to target these customers with personalized interventions to keep them engaged and coming back for more.
- Optimizing marketing campaigns: Predictive analytics can be used to optimize marketing campaigns by predicting which customers are most likely to respond to different types of messages and offers. This information can then be used to create more targeted and effective campaigns.
- Personalizing the customer experience: Predictive analytics can be used to personalize the customer experience by predicting what customers are most likely to want or need at different stages of their journey. This information can then be used to create more relevant and engaging experiences for each customer.
Examples of How Predictive Analytics Is Being Used in Funnel Analytics Today:
- Amazon and Netflix use predictive analytics to recommend products to customers based on their past purchase history and browsing behavior, or viewing history and ratings.
- Bank of America’s developed Predictive Intelligence Analytics Machine (PRIAM) is a machine learning-powered prediction system that helps bankers more effectively identify investors for initial public offerings (IPOs). PRIAM analyzes a variety of data points, including the equity offering details, historical deal participation, trading and client touch point information, and market data, to predict which investors are most likely to be interested in a particular IPO.
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If you’re interested in learning more about how predictive analytics and funnel analytics can help you improve your customer journey and achieve bottom-line results, contact us today for a free consultation. Your data-driven future begins here.