Over 300 executives surveyed about their experience with predictive analytics reported improvements in ROI.
A new study by Forbes Insights states that 86 percent of executives surveyed found predictive analytics had delivered a positive return on investment for their business. The results, announced in an Oct. 27 blog post at Forbes, are from a study titled “The Predictive Journey: 2015 Survey on Predictive Marketing Strategies.” Conducted by Lattice Engines, a provider of predictive analytics for marketing, the study surveyed 308 executives in April 2015 from companies with at least $20 million in annual revenue.
Other findings from the report include:
- 68 percent of organizations are seeking talent with expertise in predictive analytics.
- 71 percent of organizations offer onsite training and education in predictive marketing for employees.
- Six out of ten organizations report accurately measuring marketing campaign/initiative results as one of their most difficult obstacles.
- 41 percent of organizations cite improving customer retention as the key metric to measuring the success of predictive marketing efforts.
The study also showed that despite the enormous ROI, only 13 percent of companies who use predictive analysis consider themselves to be on an advanced level with it.
“Predictive marketing is rapidly becoming essential to data-driven organizations,” says Forbes Insights’ Bruce Rogers in the post. “Businesses need to close the gaps among sales, marketing, operations and other departments that are made worse by siloed data and systems.”
RTInsights Take: Companies such as Netflix and Amazon have excelled at predictive marketing with recommendation engines, and there are a number of software vendors (Tibco, Lattice Engines, Leadspace) that offer predictive marketing tools often with machine learning. As customers increasingly flock to the Internet for purchases, the ability to aggregate real-time data from a number of systems (customer-relationship management, clickstreams, Web data) and automatically make the “next-best offer” to an online buyer is a hot field. Other marketing use cases include improving products, pricing, and messaging through the use of real-time data or sentiment analysis.
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