How Science Powers Predictive Marketing

The days of spending money and hoping for the best are over. Predictive marketing identifies who is likely to convert and focuses budget and effort on them.

Predictive analytics will change marketing like algo-trading changed finance. Up until a few years ago, stock trading was performed by people. These talented individuals pored over charts to discover hidden signals before others do. Today, it is estimated that 60-70% of trading volume is actually done by computers.

Predictive Flow

Marketing is transforming as well, moving from people with creative minds to people who can leverage data. Marketing automation was one of the first stages, as it required marketers who were able build scoring models and be comfortable with creating nurturing flows. Predictive marketing is the next stage, and will require marketers who are comfortable with the art, but can also handle the science.

Traditional Scoring vs. Predictive Scoring

Today the traditional marketing and sales process creates a lot of waste. Marketers need to generate a large number of TOFU leads, which after nurturing, sales development and sales, result in very few deals.

Predictive lead scoring, on the other hand, identifies those who are likely to close early on, at the beginning of the funnel, and thus makes the process a lot more effective. Identifying potential clients early on allows you to invest a lot more in every qualified lead rather than investing small amount in a large number of unqualified leads.

This is how your nurturing will change after applying predictive marketing to score your leads:

Predictive Scoring

*An example of higher conversion is exemplified in this case study.
Predictive marketing creates marketing machines that generate high volume of Marketing Qualified Leads (MQLs) with high funnel velocity. To do that, we build mathematical models that can leverage thousands of variables on every lead to predict whether he or she is likely to buy.

How Predictive Scoring Works

One of the most important things in predictive analytics is the data. Traditional scoring is based on 10 marketing indicators, predictive scoring uses 1,600 marketing indicators sourced from the web. Obviously, not all indicators actually impact leads’ tendency to convert so you have to use math to select the right indicators. Typically, we end up with 200-400 indicators with predictive power.

The algorithms look at closed deals as compared to unqualified leads. Then, the algorithm is “trained” to figure out which variables predict who is a qualified lead that is likely to close. The next stage is to apply this to calculate the likelihood to convert based on indicators to the entire house list.

Some marketers need more fuel for their sales team, others need to accelerate their sales funnel, or identify cross-selling opportunities. Another popular use of predictive scoring is cleansing the house list and getting rid of all those leads that are never going to convert.

The Predictive Marketing Revolution

Predictive scoring revolutionizes the way that companies target new prospects. It enables them to identify the needle in the haystack early on and avoid spending time and resources on thousands of leads that are never going to convert. Predictively marketing means leveraging algorithms to make smarter decisions so that you can not only predictively score your leads, but also effectively predictively target and engage prospects.

Join our webinar tomorrow, May 29th, to hear more about the science behind predictive marketing and how you can begin to implement some methodologies.

Join our webinar to learn about the science behind marketing
Tal Segalov


Tal is a Co-Founder and Chief Technology Officer at Mintigo. He brings more than 15 years of experience in software development. Prior to Mintigo, Tal was AVP Research and Development for modu, the modular mobile handset company. His previous experience includes developing complex, large scale data analysis systems. He holds a B.Sc. EE and a B.A in Physics from the Technion – Israel’s leading school of technology. He also holds an executive MBA from Tel Aviv University.