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Predictive marketing gives rise to a new, data-driven way to approach marketing, with the customer at its center. The ability to collect and analyze data on every single customer, as well as his or her interactions with your brand, allows you to serve your customers better and generate more sales. At its core, as Figure 1.2 illustrates, predictive marketing is helping companies to evolve from a product- or channel-centric orientation to a customer-centric orientation. Companies using predictive marketing focus on developing and managing customer relationships rather than just developing and selling products or channels:

● Instead of finding customers who will want your products, it is now possible to discover which products your customers will want in the future.

● Instead of maximizing sales, companies in the customer era focus on optimizing customer lifetime value and share of wallet to drive profitability of the enterprise.

● Instead of organizing around channels and product lines, companies which practice predictive marketing organize around the customer.

● With the customer at the center, companies are using big data and predictive analytics to configure processes and organizations to find ways to customize interactions.

● Communications become much more targeted and the key metric is relevance, not reach.

Figure 1.2 From a Product to a Customer Orientation