Business dynamics shift very quickly, and in order to get ahead, companies and organizations must find ways to handle these changes proactively rather than simply reflecting on past results and thinking about what they should have done differently. However, the rise of machine learning brings the possibility of predicting future trends and adapting strategies while it's still possible. This technology provides a window into the future that allows for quick action and better results.
Forecasting is certainly not a new concept in any industry, but in years past the magic elixir included a heavy dose of intuition, experience, historical data, and guesswork. While those factors can provide value to a forecasting exercise, machine learning offers a paradigm shift by excelling at identifying patterns, making predictions, and continuously improving performance over time. Let's consider what we can do with this cutting-edge technology to make informed decisions based on a high level of confidence and then adjust the inputs as needed.
Four Ways to Take Advantage of Machine Learning Forecasting to Improve Outcomes
ROI
As marketers, we strive to get the most out of every dollar we spend. We can use the read-out from our various forecasting models to adjust our channel and campaign focus based on forecasted KPIs for a duration as it makes sense. With machine learning predictions in view, our belief is that ROIs across the board will increase. We can easily measure our results against the machine learning forecast and adjust as frequently as needed. The sophisticated calculations that improve over time (more data the better!) will help take the guesswork out of how to tell whether channels and campaigns are performing to the expected ROI.
Budgets
Planning and keeping track of campaign spend is a constant in the life of a marketer. Machine learning can not only assist with keeping up with projected spend levels, but also inform how to adjust and allocate funds in order to get the best overall results (ROI, of course!). The predictive data may point to the need for additional investment to attain the desired goals. The predictions may also steer towards new and improved efforts, such as launching an additional email campaign, focusing more on SEO, or moving funds into high-funnel campaigns, depending on the goal. There are a plethora of budget-related changes to consider, but in the end, the advanced pattern predictive modeling gives confidence that the strategic and execution budget adjustments made today will yield superior future results.
Personalized Strategies
We all know that personalization drives better engagement and thus conversions, and marketers have deployed a wide variety of strategies throughout the years to address the drive for more personalization. Machine learning can help with this as well, enabling the creation of personalized campaigns based on individual customer behavior. By analyzing customer preferences and interactions, machine learning models can tailor offers, messaging, graphics, and timing to specific segments, enhancing customer engagement, conversion, and retention like never before.
Reporting
Marketers are always keen to understand how their websites and campaigns are performing. As a result, performance reports are usually the first thing they check in the morning. However, this isn't simply a matter of being obsessive. Sure, marketers want to know their most recent KPI results, but by checking how performance measures up against the forecast, they can see what adjustments (if any) need to be made to generate incremental improvements. Reporting that shows key KPI data, with actuals over a duration of choice, along with a look at future predictions is simply…powerful. These views can be automated and refreshed as needed, which empowers marketers to have the kind of productive conversations that move the needle.
Need Help?
Forecasting certainly isn't a new concept, but it used to rely heavily on intuition, experience, and guesswork. Now, machine learning is changing the game and allowing savvy marketers to boost results like never before. Check out our latest blog post for four tips on how to leverage machine learning to take your website and campaign performance to the next level.
