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Predictive Analytics Offers Housing Market Insights

MovingIndustryThere are a lot of businesses attached to the housing market, from storage companies to cable providers. According to a recent Forbes article, some of them are turning to predictive analytics to help them create just-in-time promotions targeting consumers who are about to make the big move.

The model helps these companies understand where a homeowner is in their home sale and moving process. For example, it can predict with 75% accuracy whether any given home on the market is likely to sell in 30, 60, or 90 days. Different types of communications and promotions are more effective during different portions of that cycle. The result of applying predictive analytics in this case is a spike in these company’s marketing ROI.

The PODS storage company was provided as an example.

Reaching home sellers is essential for their business, but because moving and storage is treated as a seasonal activity (i.e., the probability of any random US Household needing PODS is higher in the spring and fall than it is in the summer and winter, so that was the best time to expand marketing efforts.

In truth, however, people are moving all of the time. Target Data’s analytics allowed PODS franchisees to identify the best leads with their respective regions and the best time to reach them. In other words, which households were likely to spend the most with PODS and which were close to selling? By matching geo-demographic scoring with listing data, we were able to better leverage the money they were spending on direct marketing throughout the year, not just during the traditional peak season…As data continues to be more accessible and the tools become more affordable, any size company can benefit from predictive analytics.

How will predictive analytics benefit your company? Much depends on how you go about launching any given predictive analytics initiative. Avoid common pitfalls and make the smartest launch you can. Register for TMA’s free webinar so you can take your data to the next level.

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