Marketing TechnologyData & AnalyticsReal-time relevance and predicting purchases

Real-time relevance and predicting purchases

Data is useless if brands aren’t making the most of it. Today’s technology gives marketers the tools to serve personalized offers at the right moment today, but also predict the right offer for tomorrow.

It’s common for consumers to receive promotions from retailers after they’ve made a purchase. But wouldn’t people find that promotion more valuable in real time, when they’re actually in the store?

Fifty-eight percent of consumers think so, according to Eagle Eye Research. This highlights the evolution of real-time marketing, which is particularly important when reaching millennials. Having grown up with technology, they’re savvy (67% of consumers from 16 to 24 are more likely to redeem promotions digitally) and expect the same from brands.

Modern marketers have the technology to serve personalized, relevant communications. To reach the consumers of tomorrow, it’s imperative they master those tools with real-time and predictive offers.

Content produced in association with Eagle Eye.

Relevant vs. loyal

They may sound interchangeable, but relevance and loyalty aren’t necessarily the same. If a brand uses beacon technology to send a promotion to someone nearby, they’re likely to take the brand up on its offer, even if they generally prefer a competitor.

Relevance is a hallmark of Netflix’s success. The company’s sophisticated algorithm analyzes subscribers’ viewing patterns to serve up personalized content, including marketing. Netflix took personal preferences into consideration when they created “preview” ads, which show different trailers based on what people watch.

Netflix’s ability to personalize is well-regarded, but also necessary. The recommendation engine keeps subscribers from feeling so overwhelmed with options that they ultimately don’t choose to watch anything. As a result, the company serves relevant content to users, boosting engagement and saving $1 billion per year.

The role of data

Loyalty differs from relevance, but it’s still relevant. Data gives marketers the ability to build both loyalty and relevance in a symbiotic way. Retailers and restaurants have access to countless data sources, including email, apps and POS systems. The more someone shops with your brand, the more information you have about them.

That data paints a complete picture of who they are, providing insights about what’s relevant to them. Partnered with today’s technology, this should result in the real-time offers that benefit both the buyer and the brand.

For example, Eagle Eye found that 63% of restaurant consumers would appreciate offers while they’re sitting at the table.

Data-driven predictions

Promotions that take right now into consideration add value; offers that factor in tomorrow are one level higher. Forrester even found that 77% of marketers intend to implement predictive marketing capabilities in the next year.

With predictive marketing, brands use data to determine consumers’ needs before they even realize themselves. Shop Direct, a “digital department store” based in the U.K., has achieved its fifth consecutive year of record sales and profits, thanks in large part to the company’s investment in predictive personalization. Using IBM’s machine learning capability, the retailer predicts when consumers will run out of beauty products they’ve purchased in the past, automatically sending reminders to stock up.

Nearly three-quarters (73%) of consumers would appreciate retailers anticipating their regular purchases and sending targeted offers accordingly. With regard to restaurants, 65% said the same.

Dining establishments can use beacon technology to upsell those consumers who are present, rather than sending offers after-the-fact. Additionally, they can use predictive offers around established dining patterns, such as birthdays.

Summary

Millennials already spend $600 billion a year in the U.S. alone. That spending power is only going to increase as they become more established in their careers and dominate the workforce.

To engage this tech-savvy generation, it’s imperative to master personalization. All the data in the world is useless if brands don’t make the most of it, and today’s marketers have the tools to serve them personalized offers for right now and tomorrow.

To learn more about putting real-time and predictive offers into practice, read Eagle Eye’s ebook, “Personalization: Beyond A Name.”

 

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