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2014 data driven marketing predictions


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AgilOne received survey responses from 70+ retail marketers which clearly shows that 2014 will be the watershed year for data-driven marketing and predictive analytics.

80% say that by the end of 2014 they will have some central customer data warehouse (but most do not yet collect all customer data) and 70% will try at least some form of predictive analytics (but most will only do this in the email channel).

While there is great interest, the survey also shows how immature most retail organizations are: 61% admits to not running any abandoned cart campaigns. Even fewer have win-back campaigns or VIP programs.

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2014 data driven marketing predictions

  1. 1. AgilOne Report 10 Predictions for Data-Driven Marketers in 2014 Based on the AgilOne Retailer Survey
  2. 2. The AgilOne Retailer Survey How well have retail marketers adopted data-driven marketing practices, and what are they planning for 2014? 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.
  3. 3. The big data revolution is happening Prediction 1 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. NO 20% Survey Question and Response Have you built a central customer data warehouse? Planning in the next 12 months 29% YES 51%
  4. 4. Less than 1/3 of retailers currently have a complete picture of their customers Prediction 2 More companies will integrate offline, call center and loyalty transactions with their online customer data. Online Email Transactions Engagement 76% Survey Question and Response What types of customer data do you include in your warehouse? 69% Offline Transactions Website Clicks 47% 44% Call Loyalty Center Points and Conversions Transactions 30% 27% None of the Above 16%
  5. 5. Predictive analytics is quickly becoming mainstream Prediction 3 By the end of 2014 nearly 70% of retailers will be using predictive analytics for at least one of their channels. NO Survey Question and Response Are you using predictive analytics in your marketing? 31% Planning in the next 12 months 25% YES 44%
  6. 6. Likelihood to buy is the most popular predictive model Prediction 4 Marketers will move beyond using likelihood to buy predictions and will begin to utilize recommendations, customer clusters and likelihood to churn predictions. Likelihood To Buy Survey Question and Response For those who use predictive models, which of the following predictive models do you use? Product Clusters 73% 41% Predicted Behavioral Likelihood Likelihood Lifetime Cross-Sell Clusters Upsell to to Value Recommend Recommend Churn Engage 41% 41% 37% 33% 31% 29% Brand Clusters 27% Predicted Likelihood Next-Sell Share of to Recommend Wallet Unsubscribe 24% 14% 12%
  7. 7. Most marketers are only using predictive analytics for email Prediction 5 Predictive modeling will move beyond email and direct mail to include social media and offline transactions. Email 82% Survey Question and Response For those who use predictive models, in which of the following channels are you using them? Direct Mail 41% Social Phone Call Center Brick and Mortar Stores Website 31% 20% 12% 4%
  8. 8. Customer segmentation becomes a must Prediction 6 Nearly 70% of retailers will be doing customer segmentation by the end of 2014. NO Survey Question and Response Are you using predictive (clustering or other) models to segment your customers? 32% Planning in the next 12 months 24% YES 44%
  9. 9. Customer retention marketing is becoming a priority Prediction 7 In 2014 marketers will move beyond new customer welcome campaigns and (finally) launch abandoned cart campaigns, customer win-back, and VIP appreciation programs. New Customer Welcome Which of the following programs have you completely implemented? Email Retargeting Lapsed Customer Win-back VIP Customer Program 53% Survey Question and Response Abandoned Cart Campaign 39% 36% 30% 26% Post Pro-active Purchase Touch of At-risk Recommend Customers 24% 16% None of the Above 13%
  10. 10. Marketers are choosing channels based on predicted lifetime value Prediction 8 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. NO Survey Question and Response Are you allocating marketing dollars to programs and channels based on predicted lifetime value? 31% YES 26% Planning in the next 12 months 43%
  11. 11. More marketers discover Facebook lookalike campaigns Prediction 9 By the end of next year, almost half of marketers will have tried Facebook lookalike campaigns to acquire more valuable customers. Planning in the next 12 months Survey Question and Response Are you using Facebook lookalike audiences to find customers similar to your best (most valuable) customers? 13% NO YES 36% 51%
  12. 12. More marketers will learn to use data Prediction 10 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 Response Survey Question and Response Do you have an in-house resource to CREATE predictions and analytics? Do you have an in-house resource to USE predictions and analytics? Planning in the next 12 months 11% YES 39% NO 50% 11% NO 26% YES 63%
  13. 13. Key Takeaways • Retailers that do not invest in building a • Most retailers still have work to do to get all central customer data warehouse and predictive analytics will quickly fall behind. customer data in one place, specifically offline data, and to expand the use of predictive analytics beyond email. • 80% of retailers will have some form of • Those who implement a central customer central customer data warehouse and 70% will use some form of predictive analytics within the next 12 months. data warehouse can reduce marketing campaign costs 5x, and those who run predictive campaigns have up to triple the margins.
  14. 14. Next Steps • Learn more about data-driven marketing at • Sign up for data-driven marketing tips in your inbox at • Check out the AgilOne cloud for data-driven marketing at • Contact us with any questions at or (877) 769 3047.
  15. 15.  (877) 769 3047