London, 29 July 2016

The advent of cloud computing and self-service tools means that predictive analytics is more accessible to marketers than ever. This was underlined in new research today published by Econsultancy and RedEye which found 40% of companies are either using, currently implementing or budgeting for predictive analytics over the next 12 months.

Investment in predictive analytics is also being driven by marketer’s efforts to keep up with consumer’s rising expectations with three-quarters of executive’s rating ‘better customer experience’ as a key business benefit.

The report also underlines the benefits of putting predictive analytics into practice, with 53% of companies with this capability reporting a significant increase in sales.

More importantly, the survey highlights that the benefits of predictive analytics can only compound over time, with organisations that rate themselves as ‘highly competent’ more than more than twice as likely to experience a significant sales increase.

That predictive analytics can have a positive impact on an organisation’s bottom line is clear.
But the right processes need to be in place to embed it within the organisation first. According to the research, for example, 45% of marketers cited disparate tech platforms while 39% rated business culture as key barriers to predictive analytics success.

The report also offers a glimpse into the way organisations currently structure their predictive analytics teams, with 61% of client-side respondents claiming that they are ‘significantly under-resourced’.

In addition, the research highlights key skills critical for effective use of predictive analytics, with 87% of companies identifying ‘defining consumer activities and problems’ as a top-three choice.
The type of tools also has a significant impact with a third of companies opting for in-house solutions, implying companies want to have full control of their data, and are using solutions specifically tailored for their needs.

Mark Thomas, RedEye’s Head of Insight, commented: “We were delighted to have the opportunity to run this report for the first year with Econsultancy. Gauging where our marketing colleagues are in terms of their Predictive Analytics, their measurements for success and the key barriers that are holding them back, gives a real insight into what the future holds. The maturity model created from the research gathered in this report offers a great road map to guide organisations on their journey towards realising the strategic benefits that Predictive Analytics can offer.”

Jim Clark, Research Director at Econsultancy, said: “Considering that the number of connected devices is forecast to reach 50 billion by 2020, the amount of data marketers have at their fingertips will increase exponentially. In many respects the future of marketing and predictive are intertwined and it is simply a matter of time before it becomes a standard practice in every business function. This is reflected in the research for this report which found that 99% companies agree that the use of predictive analytics will be important for the future of their organisation”.

Get this report

The full report is available on the Econsultancy website here: https://www.econsultancy.com/reports/predictive-analytics-report .

The report is available to Econsultancy subscribers. For more information about this report, contact:
Jim Clark, Research Director, Econsultancy
jim.clark AT econsultancy.com
+44 (0) 207 269 1450

About Econsultancy

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About RedEye

RedEye is a multi-channel personalisation company that helps their clients deliver the right message, at the right time, to the right customer on the right device. They cut through the hype and buzzwords that surround marketing automation and personalised marketing. RedEye want to help our clients quickly see the maximum value from a solution that could transform their CRM strategy.

RedEye’s family of Contour products are driven by a unique Customer Data Platform that combines all customer data, online and offline, from in-store purchases to last products browsed online and makes this vast depth and breadth of data available to their clients through sophisticated and intuitive tools and interfaces.

RedEye are hands-on people who’ll spend time with their customers planning their programmes and supporting them through their journey. RedEye are interested in building long-term relationships, not selling and shipping off.

RedEye has 3 UK offices (London, Milton Keynes and Crewe) and clients include Interflora, Haven Holidays, Monarch, and Hotel Chocolat.

Published on: 9:53AM on 29th June 2016