Roughly 4 in 10 in-house marketers and agencies are either using, implementing, or budgeting for predictive analytics, a new study [download page] from Econsultancy and RedEye has found. For company respondents to the survey, which was fielded among about 400 digital and e-commerce professionals with a heavy UK skew, increasing revenue (73%) and improving customer engagement (70%) are the highest priorities for developing predictive analytics capabilities.
While the report points to the “increased accessibility” of predictive analytics today, this is still an area where there is much room for growth. To wit, while almost 8 in 10 company marketers rated their organizations as at least competent in descriptive analytics (who, what when, how, where?), only 23% could say the same about their competency in predictive analytics.
Additionally, some of the areas where marketers most wish to use predictive analytics also turn out to be the most difficult areas in which to implement the technology. For example, 82% are either using or planning to use predictive analytics to further their understanding of their customers, but 45% (the most of any area) rate this as a highly difficult area in which to implement predictive analytics. The same goes for personalization, which is another top use case, but which seems to be one of the more difficult areas in which to use predictive analytics.
The sweet spot, at least right now, seems to be in boosting conversions. Fully 84% of company marketers surveyed are using or planning to use predictive analytics for conversions – and respondents are experiencing the most success and virtually the most ease of implementation in this area.
The following are some other key takeaways from the Econsultancy and RedEye report.
About the Data: The Econsultancy and RedEye report is based on a survey of almost 400 digital and e-commerce professionals from the client-side (59%) and supply-side (41%). About half (51%) of the respondents are based in the UK, with another 22% from Europe (non-UK – no need to make that distinction soon…) and 23% from North America. The financial services and insurance (15%) and retail (12%) sectors were the most heavily represented.
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