What is Prescriptive Marketing?

What is Prescriptive Marketing?

Before we touch base on the meaning of prescriptive marketing, it’s paramount to first understand the different maturity stratum of marketing analytics. They are;

Descriptive Marketing –  In our point of view, this is the first level of marketing. It’s called the Data Collection phase. It has to do with Big Data. This is where data is collected and data mined from heterogeneous data ecosystems to gain insights into a customer, competitor or market. Organizations today have to pay close attention to this level of analytics because it ‘s the precursor to moving to next level. Emphasis should on validating and maturing your program logic to obtain a 360-degree view of your customer, competitor, market, and business data. The risk of not having good data will promote outliers and skewed data resulting inaccurate analysis.

Predictive Marketing – In this phase, the insightful information collected gets fed into built-in statistical techniques and algorithms to predict probable future outcomes of a customer based on their personas. Understanding data relationships aids in being able to segment a customer based on certain characteristics relationships. The data maturity roadmap should always be to move to a state to have deep personalized customer understanding. Sentiment analysis is a common type of predictive analytics. That is the input to a model in plain information whereas the output to the model is a weighted score that is positive or negative or a numeral variance between +1 or -1. In this case, the model computes and is predicting the data that we don’t have which is a sentiment label.

Prescriptive Marketing – This is the last stage of the maturity model of marketing analytics. In a nutshell, prescriptive marketing is a new way of thinking about customer-concentric relations utilizing the technologies of big data and machine learning which when coalesced is called Prescriptive Marketing. Applying Prescriptive analytics is going to big game changer to organizations today because it positively impacts customer experience at every customer value-life-cycle touch points; directly boosting customers loyalties and revenues.
We believe that Prescriptive Marketing is at its infancy stage and there is allot of untapped potential to discovering and learning more about building a personalized relationship with one’s customers.