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Friday, July 26, 2013

Predictive Analytics in Action: Part 2 Demand Activation

By Bernie Lillis, Vice President of Strategic Solutions for Insurance Dialogue

As discussed in part 1, predictive analytics can be used to customize key marketing messages, such as web content, to dramatically lift conversions and optimize cost per sale. Predictive analytics can also be integrated with CRM data to improve a company’s efficiency in core functions.

Demand activation appends CRM data and publicly available data to predict a lead's likelihood to purchase, down to the preferred price and product type. Leads are scored and prioritized to convert high-value prospects quicker.

By appending CRM and publicly available data, a company can segment and score a lead according to defined attributes. Predictive lead scoring can be tied into a brand's existing lead data to predict which attributes will most likely result in a profitable sale and which are less likely to close. The data scoring can even predict the preferred price and product type that will entice a particular lead to convert. By analyzing and scoring your lead lists to create a picture of the "ideal buyer," your engagement center can now prioritize the leads that are predicted to close, drastically increasing conversion rates.

Consider this situation: An auto insurance company that markets to high-risk drivers hired a call center outsourcer to sell more auto insurance policies for the company. To sell smarter and more efficiently, the outsourcer provided statistical data on which lead types were more likely to convert, along with which lead sources sold the most quality leads based on conversion ratios. Through the use of a predictive lead scoring technology, the outsourcer was able to predict what the attributes of the ideal buyer were based on an analysis of the consistencies in buyers' attributes. The leads with these converting attributes were prioritized to the top of the call list to ensure the first sale. Before analytics, the auto company had to talk to an average of 62 leads to get one sale; after analytics, that number was nearly cut in half, with a lead per sale ratio of 32:1.

To learn more on the benefits of predictive analytics, read part 1, check back for part 3 and sign up for our August 15 Best Practices Panel.