Predictive personalization: Using machine learning to personalize customer experiences

Predictive personalization: Using machine learning to personalize customer experiences


5 min read

What is predictive personalization?

Many brands are familiar with personalization, and the positive impact it can have on your marketing strategy. In recent years, advancements in machine learning and data activation have opened the door for more authentic personalization at scale.

Predictive personalization is a term that involves using various machine learning predictions to create customized, personalized experiences for customers, leads, prospects, or any other interesting group of people. It enhances personalization strategies across the entire customer journey. Whether you’re focusing on–or looking to incorporate–product recommendations, lead scoring, churn prevention, repeat purchasers, or something else altogether, predictive personalization strengthens those strategies and provides clear indicators for how to engage so that every interaction your customers have with your brand is a delight.

Benefits of using predictive personalization for personalization at scale

On its own, creating personalized content that’s relevant to each individual customer is a long, data-hungry process. Using machine learning for predictive personalization, however, simplifies the process and provides an array of benefits that enable you to achieve personalization at scale.

Enhanced insights through vivid consumer data

Your first-party customer data includes key datapoints that describe your people your brand is interested in–your customers, leads, prospects, and more–through their interactions with your brand. This can help you identify the products & services that they’re interested in, so that you can create offers that are relevant to them.

Predictive personalization involves the unification of your first-party customer data with rich, third-party, cookieless consumer data–after all, your customers exist outside of interactions with your brand. The end-result is a clear 360º view of your customers, leads, prospects, and any other group of people you’re interested in that gives you a firm understanding of who your customers are and what they’re like. Insights via demographics, psychographics, financials, hobbies, and more give you easy guidance for how to personalize your engagement in a highly resonant way.

Proactive engagement

Regardless of the interaction in question, it’s always better, if given the option, to be proactive rather than reactive. Predictive personalization gives you the ability to personalize your content & creative before you’ve even interacted. You’ll find insights like how likely they are to churn and how much they’re likely to spend via their predicted LTV, so that you’re always one step ahead of the next action your customers are going to take.

Predictive personalization mock

Personalization at scale

By using machine learning for predictive personalization, the effort involved in scaling personalization across your entire customer base–past, present, and future–isn’t as herculean as it sounds. Machine learning algorithms can segment your customers into bespoke, cohesive personas that you can deploy anywhere in your stack, allowing you to create individualized, personalized campaigns for any given subgroup of people you’re interested in.

Internal talk track alignment

While the benefits of predictive personalization on external-facing engagement are clear–see how Sealed did it–there’s an additional benefit that’s equally as impactful: internal alignment of understanding who your customers are, and what makes them tick. Personas enable you to craft clear talk tracks on a persona-level basis so that, regardless of salesperson, prospects and leads will receive content that highlights the same resonant features. Predictive personalization can also help identify which of your salespeople are best at speaking to specific personas so that you can set priorities and internal coaching appropriately.

Implementing predictive personalization with Faraday

Customer prediction platforms like Faraday allow you to implement predictive personalization with ease–without a data science degree, and without a single line of code. Let’s dive into Faraday to see just how easy it is.

Connect data and define customers

First, you’ll map your customer data to the matching Faraday properties. Then, in cohorts, you’ll build a cohort for your current customers by defining the event that makes them a customer, such as a purchase.

Predictive personalization customers cohort

Build personas to reveal rich insights to enable predictive personalization

Predict personas with the help of Faraday’s rich, cookieless, opt-in consumer data on top of your own first-party customer data. Discover trait breakdowns like hobbies, shopping styles, gender, household income, and more to understand the nuances of how different portions of your customer base stand apart from each other. These breakdowns give you crystal-clear guidance on how to speak to your customers in a way that makes them feel understood.

Predictive personalization customer personas

Use customer predictions to create proactive, relevant campaigns

Take predictive personalization to the next level by predicting likelihood to churn, repeat purchase, and more so that your content is not only personalized to match who your customers are, but that it’s also attuned to how they’ve interacted with–or will interact with–your brand, and at any scale you need, wherever in your stack you need.

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