Predictive analytics the tool for tough times 

New research report suggests that organisations who use predictive analytics can gain competitive advantage through improved customer retention 

Portrait Software has underwritten a research report that demonstrates how best-in-class companies gain improvements in customer retention and operating profits. 

By using predictive analytics companies can move closer to predicting the future behaviour of customers to increase sales revenue, provide more accurate profit forecasting and yield higher customer retention rates - which is 93% for Best-in-Class companies. Portrait is offering a complimentary copy of the Aberdeen Group report: “Predictive Analytics: The Right Tool for Tough Times”. 

The report highlights how:

• Best-in-Class Performance companies drive incremental sales through improved targeting
• Predictive technologies help drive decisions in real-time
• Best-in-Class companies empower business users to use predictive models and tools without the assistance of dedicated statistical modellers 

According to David White, Research Analyst at Aberdeen Group, “Improving the targeting of marketing programs will lead to incremental sales and a reduction in marketing costs. By focusing campaigns in this way, programs can immediately realise greater campaign ROI, increased relevancy, greater cross sell and improved retention.” 

Even the most sophisticated response and churn modelling has been proven to mistakenly target individuals that will buy anyway, will never buy or even react negatively to the marketing message – wasting valuable marketing monies and causing irreparable damage to the customer experience. 

 “This report endorses the high performance gains that our global customers have achieved when using predictive techniques such as 40% reduction in mailing volumes, a 5-fold increase in campaign ROI and a 36% improvement in retention compared to using traditional analytics,” said Kieran Kilmartin, Group Marketing Director, Portrait Software.