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.

1. AgilOne Report
10 Predictions for
Data-Driven Marketers in
2014
Based on the AgilOne Retailer Survey

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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 info@agilone.com or (877) 769 3047.

15. info@agilone.com  (877) 769 3047