Many marketers are cottoning on to the benefits of using predictive analytics.
By using consumer data to understand, forecast and influence behaviour, the aim for digital companies is to increase loyalty and enhance customer experience in the long-term.
Our all-new Predictive Analytics Report, in association with Red Eye, highlights the various ways that marketers are now using the technology.
Here are some key takeaways from the research.
Technology is more accessible
Due to the rise of self-service tools, predictive analytics is more accessible than ever before.
With 40% of companies now using the technology or planning to use it in the next 12 months, it is now commonly seen as a valuable way of understanding customers at a deeper level.
As technology becomes more accessible (and the amount of data we have access to explodes), the challenge is in finding ways to make sense of it, as well as knowing how to integrate data-driven strategy into already-established businesses.
Lack of unity and expertise are biggest barriers
Speaking of strategy… with 32% of company respondents citing siloed organisations as the biggest barrier for investment, it appears not everyone sees the value in predictive analytics.
Similarly, the biggest challenge for agencies seems to be a lack expertise in the area.
Despite the rise in demand for skills (the number of permanent IT roles looking for predictive analytics knowledge has risen a staggering 241% in the past two years) – agencies in particular are at risk of falling behind if they do not invest internally.
Transactional data is the most popular
When asked about the types of data organisations are using, nearly three in five company respondents said they use transactional data.
With email and behavioural data also a priority, social and offline behaviour is less likely to be of importance.
While helpful for discovering in-depth insight into customer behaviour, this focus on just a few channels could prove to be limiting in future.
Alternatively, a broader, richer and more comprehensive overview of all touchpoints could prove more beneficial for understanding consumer needs.
Marketers agree that predictive analytics will be crucial in future
Despite some scepticism in how businesses will use predictive analytics, there’s no doubt that it will be a continued focus over the next few years.
99% of respondents agree that it will be crucial for the development of organisations and clients alike.
There’s no denying that data is one of the greatest tools at our disposal.
The challenge for marketers is knowing exactly how to use it for the benefit of the consumer.
For even more insight into this topic, download the Predictive Analytics Report in full.