Excerpts on Predictive Analytics from CRM News in 2004 and still relevant:

“While creative ideas and good marketing instinct will always be important, effective marketing requires a thorough understanding of customer behaviors and motivations.

Predicting customer product preferences and purchasing habits — and crafting the most relevant marketing messages around this information — requires a carefully orchestrated mix of intuition and an analytical framework that supports fact-based decision-making. Without an analytical structure in place, even the savviest marketer or marketing team will have difficulty analyzing the high volume of complex customer information.

For example, why do some customers make multiple purchases? How can companies ensure long-term loyalty from high-value customers? How can you attract and retain different types of customers? This level of detailed customer knowledge enables marketers to develop relevant, compelling messages and offers for each customer, and to adapt their approach as customer needs and wants change throughout the customer lifecycle.”

Read more