10 Predictions for Data-Driven Marketers in 2014Based on the AgilOne Retailer Survey
AgilOne Report
The AgilOne Retailer Survey
Our findings and predictions are based on the detailed survey responses from 70 mid-market retail executives about their use of big data and predictive analytics in day-to-day marketing.
Take a look at the results in the following slides along with our 2014 Retail Marketing Predictions.
How well have retail marketers adopted data-driven marketing practices, and what are they planning for 2014?
The big data revolution is happening
By the end of 2014, 80% of retailers will have a central customer data warehouse with the ability to link all data points to unique customers across channels.
YES51%
NO20%
Planning in the next 12 months
29%
Survey Question and ResponseHave you built a central customer data warehouse?
Prediction 1
Less than 1/3 of retailers currently have a complete picture of their customers
More companies will integrate offline, call center and loyalty transactions with their online customer data.
Survey Question and ResponseWhat types of customer data do you include in your warehouse?
Prediction 2
OnlineTransactions
76% 69% 47% 44% 30% 27% 16%
EmailEngagement
Offline Transactions
WebsiteClicks
CallCenter
Conversions
LoyaltyPoints and
TransactionsNone of
the Above
Predictive analytics is quickly becoming mainstream
By the end of 2014 nearly 70% of retailers will be using predictive analytics for at least one of their channels.
Survey Question and ResponseAre you using predictive analytics in your marketing?
Prediction 3
YES44%
NO31%Planning in the
next 12 months
25%
Likelihood to buy is the most popular predictive model
Marketers will move beyond using likelihood to buy predictions and will begin to utilize recommendations, customer clusters and likelihood to churn predictions.
Survey Question and Response
For those who use predictive models, which of the following predictive models do you use?
Prediction 4
ProductClusters
PredictedLifetime
ValueCross-Sell
Recommend
BehavioralClusters Upsell
Recommend
Likelihood to
Churn
Likelihoodto
Engage
BrandClusters Next-Sell
Recommend
Predicted Share of
Wallet
41% 41% 41% 37% 33% 31% 29% 27% 24% 14% 12%73%
Likelihood to
Unsubscribe
LikelihoodTo Buy
Most marketers are only using predictive analytics for email
Predictive modeling will move beyond email and direct mail to include social media and offline transactions.
Survey Question and ResponseFor those who use predictive models, in which of the following channels are you using them?
Prediction 5
82% 41% 31% 20% 12% 4%
DirectMail
Social WebsitePhoneCall
Center
Brick andMortarStores
Nearly 70% of retailers will be doing customer segmentation by the end of 2014.
Survey Question and ResponseAre you using predictive (clustering or other) models to segment your customers?
Prediction 6
YES44%
NO32%Planning in the
next 12 months
24%
Customer segmentation becomes a must
Customer retention marketing is becoming a priority
In 2014 marketers will move beyond new customer welcome campaigns and (finally) launch abandoned cart campaigns, customer win-back, and VIP appreciation programs.
Survey Question and ResponseWhich of the following programs have you completely implemented?
Prediction 7
NewCustomerWelcome
53% 39% 36% 30% 26% 24% 16%
AbandonedCart
Campaign
EmailRetargeting
LapsedCustomerWin-back
VIPCustomerProgram
PostPurchase
Recommend
13%
None of the Above
Pro-active Touch of At-risk
Customers
Over two-thirds of retail marketers will decide how to invest their marketing dollars based on which channels attract customers with the highest lifetime value.
Survey Question and ResponseAre you allocating marketing dollars to programs and channels based on predicted lifetime value?
Prediction 8
YES26%
NO31% Planning in the
next 12 months
43%
Marketers are choosing channels based on predicted lifetime value
By the end of next year, almost half of marketers will have tried Facebook lookalike campaigns to acquire more valuable customers.
Survey Question and ResponseAre you using Facebook lookalike audiences to find customers similar to your best (most valuable) customers?
Prediction 9
YES36%
NO51%
More marketers discover Facebook lookalike campaigns
13%Planning in the
next 12 months
YES39%
NO50%
More marketers will learn to use data
Half of retailers will outsource the CREATION of analytics models, but most will have marketers on staff who know how to USE analytics.
Survey Question and ResponseDo you have an in-house resource to CREATE predictions and analytics?
Prediction 10
Survey Question and ResponseDo you have an in-house resource to USE predictions and analytics?
YES63%
NO26%
11%Planning in the next 12 months
11%
Key Takeaways
• Retailers that do not invest in building a central customer data warehouse and predictive analytics will quickly fall behind.
• 80% of retailers will have some form of central customer data warehouse and 70% will use some form of predictive analytics within the next 12 months.
• Most retailers still have work to do to get all customer data in one place, specifically offline data, and to expand the use of predictive analytics beyond email.
• Those who implement a central customer data warehouse can reduce marketing campaign costs 5x, and those who run predictive campaigns have up to triple the margins.
Next Steps
• Learn more about data-driven marketing at www.agilone.com/academy/.
• Sign up for data-driven marketing tips in your inbox at www.agilone.com/blog/.
• Check out the AgilOne cloud for data-driven marketing at www.agilone.com.
• Contact us with any questions at [email protected] or (877) 769 3047.
[email protected] (877) 769 3047
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