
Quiz Answer to:
19
Predictive Analytics for Growth
Q)
You’re tasked with using predictive analytics to improve marketing campaign performance. What types of data would you gather, and how would you use predictive models to enhance both customer acquisition and retention?
Short Answer:
Use predictive analytics to gather customer behavior data (e.g., purchase history, engagement metrics) and transaction data. Develop lead scoring models to prioritize high-conversion leads, and create churn prediction models to identify at-risk customers. Use these insights to improve customer acquisition through targeted campaigns and increase retention through personalized re-engagement. Measure the success by tracking conversion rates, customer acquisition costs (CAC), and customer lifetime value (LTV).
Detailed Answer:
Key Data to Gather for Predictive Analytics
Customer Behavior Data:
Purchase History: Track what, when, and how often customers purchase. Identify high-value customers and those at risk of churn based on purchasing patterns.
Website and App Behavior: Collect data on users’ interactions with your website or app—pages viewed, time spent, and actions taken (e.g., cart additions, form submissions). This data helps predict intent and conversion likelihood.
Engagement Metrics: Monitor email open rates, click-through rates (CTR), and social media interactions. Users who engage more frequently are more likely to convert or make repeat purchases.