Predictive analytics has always been one of the most useful instruments that enhanced and helped businesses generally and marketing specifically.

What is Predictive Analytics?

Analyzing current and historical events to make predictions about the future. It encloses statistics, data analysis, modeling, and machine learning. It used mostly to derive information from data to predict future events.

There are many ways to use predictive analytics in marketing, here we will mention a few.

Customer segmentation

Knowing who are your customers is important thing for your business, just identifying them is only the first part, after we need to segment them.

Why do customer segmentation?

Customer segmentation helps to target, and helps with personalization and this will help you reach a specific audience and create a more effective marketing campaign.

When an individual perceives your engagement as unique it increases their loyalty for the brand. You can offer a great customer experience using the amount of information that customer segmentation affords you. Customer segmentation also helps you to reduce costs significantly and increase sales.

Types of customer segementation models

  • Demographic: Demographic segmentation means to segment the market based on demographic elements such as gender, age, and income level. dividing your market demographically has a huge impact on marketing campaigns as you targeting specific people, for instance, teenagers, you know what are their primary interests and how you can appropriately communicate with them, also attracts them with their activities.
  • Psychographic: Psychographic segmentation is to divide the market depending on the customers’ shared characteristics and personality, these shared factors such as hobbies, values, attitudes, and lifestyle, for example, people that live a minimalist lifestyle, for those specific customers you can’t offer extra things or products that are not needed and you have to consider each aspect of their value to target them.
  • Behavioral: Behavioural segmentation divides the market based upon their behaviour towards the product and the company generally such as their reaction towards your email marketing campaign or their usage of the product. Noticing your customers’ responses to a specific move from your business is really helpful in targeting them later to a specific campaign. For instance, you have noticed that a specific marketing campaign with little wording and have a good design got great responses from people while others not, now you can identify who you could use wording with or email design for future campaigns.
  • Geographic: Geographic segmentation is to segment your market depending on customers’ geographic location, such as a whole country, city, or region. Target them based upon their culture, perspectives, weather, etc.. You can know their holidays and special events and target them with email campaigns and great offers.

Effective customer segmentation tools will help you to do that. Here are a few you can choose from:

  • Google Analytics
  • Yandex
  • Segment
  • Kissmetrics
  • Google Ads


After you have chosen the right tool for segmenting your customers, it is time for personalizing your content. The powerful aspect of using predictive analytics in marketing is to personalize the content and now that you have the ability to know your customers very well using the revolutionary of technology and analytics you can do it very easily in creative ways.

Customer Lifetime Value

CLV is a prediction of the value of the relationship with customers the business can generate. The goal of using predictive analytics to know CLS is to predict the future value of a customer and allow you to know the impact of your marketing campaign financially.

Marketing optimization

Marketing optimization is when you use current and historical marketing campaign data to make decisions regarding whether you keep a specific campaign or not, or creating new ads. Marketing campaigns is an overwhelming process and keep trying things without a foundation and solid database you may lose a lot of money and waste your effort. Using predictive analytics to focus on how, when a specific marketing campaign generates profits, could save you a fortune.

Customer behavior prediction

One of the many advantages data and predictive analytics can do for marketing is to predict the customer’s next move. Being able to know what is in your customer’s head could lead you to make better decisions. By using historical data and observing customers’ behavior you can know when a customer will convert or when are you going to lose one. Customer behavior prediction gives you more focus, certainly will make your business better and your customers experience finer.

Here we will list the best tools for predicting customer behavior:

  • Black Swan Data
  • Cortex
  • Xineoh

How Netflix succeeds in using predictive analytics

A perfect example of the good use of predictive analytics in marketing strategies is Netflix. They use predictive analytics models to help them explore areas of growth. Netflix optimizes its advertising spend to find the write members who will enjoy it. In promoting Netflix originals, Netflix leverage models such as Generalized Mixed Effect (GME) models and Gradient Boosting Trees (GBM). Using these models helped them gain deeper insights to promote Netflix originals.