Improving Customer Retention and Acquisition with Predictive Analytics

Improving Customer Retention and Acquisition with Predictive Analytics

In 2021, it’s important to understand what will make your customers happy and keep them coming back. Because of the impact of 2020, brands have been hard-pressed to not only predict but fully understand what their customers want in a post-COVID world. Customer retention and acquisition are often top of mind for marketers, but the real key to a successful strategy relies on predictive analytics: knowing what your prospective and loyal customers want before they do.

Predictive analytics can be one of the most challenging assessments in the marketing world but it doesn’t have to be. With location intelligence, brands gain insight into what their customers will respond best to in 2021 and beyond.

Understanding Your Customer Base

Do you know where your customers like to hang out when they aren’t shopping at your store? What about their favorite events, or their favorite hobbies? If the only data that you have is demographic data, then it’s time to make the most of location intelligence. 

Location intelligence uses privacy-friendly mobile location data to give you direct insights into how your audience moves about in the world. This might not sound like it has a whole lot to do with predictive analytics, but enriching your customer data with location intelligence goes hand in hand with getting the answers you need to accurately predict the next big trend.

Predicting What Your Customers Want

For example, you’re a busy marketer working for a popular athletic shoe company. In 2020, you noticed an uptick in sales on your walking shoes as people opted to get their exercise in by heading outside because of the gym closures. Come 2021 and sales have plateaued but you can’t determine why, at least not without data. You need to not only keep your most dedicated customers (the professional runners) engaged, but you also need to acquire new customers.

You decide to put that new location intelligence solution to good use by analyzing where your customers are frequenting the most and why. You’re able to determine that a large percentage of your customers have been showing interest in racing activities, not the walking that you have been basing your ads on. This also holds true for your new potential target market, recreational runners, who you want to turn into loyal customers. Before socially-distant 5k’s and half marathons become a real trend, you start pushing out ads featuring your top racing shoe before the competition even catches a whiff of the new trend on the horizon.

The Right Prediction, The Best ROI

Going off of the example above, it’s clear to see that because you took the initiative and acted on the location intelligence that you had gathered about your customer base, you were able to place yourself as the brand to buy racing shoes from. It’s hard for competitors to catch up to the brand that “started” the trend. 

What it really boils down to is using location intelligence as an advanced data solution. In this way, you are able to acquire new customers and keep your loyal ones happy with products that they are actually interested in buying.  Without location intelligence, it’s very likely that you would be able to position yourself as a leader in the walking space, but not the racing space. 

2021 is here, and with it, new buying behaviors and trends. Stay ahead of the game by using location intelligence for your next predictive analysis.

Want to get started with using location intelligence for predictive analytics? Contact us today!

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