The 2nd annual predictive marketing survey reveals that omni-channel marketing is growing but remains immature, with significant investments planned for customer profiles and unified customer views. Most marketers are using predictive analytics and personalized campaigns, moving away from traditional batch and blast methods. Key challenges include poor data quality and understaffing, which impede the effective implementation of omni-channel experiences.

1. 2nd Annual
Predictive Marketing
Survey
January 2015

2. Methodology
• Survey of 132 mid-market retail executives
conducted in early January 2015.
Less than $50M 38
$50-$500M 49
More than $500M 45
Grand Total 132

3. Customer Data is no longer in the hands of IT
75%
11%
2%2%
10%
Marketing IT Data Analysis/Consumer Insights/BI Ecommerce Other
Prediction: Marketers will be the primary owners of customer data

4. Web and email are a necessity to most
Prediction: Web and email will continue to be top investments
60
65
70
75
80
Web Email
2014 2015
67%
77%
66%
76%

5. Print has become the least invested in channel
Prediction: Print advertising will continue to decline
0
12.5
25
37.5
50
62.5
Print Direct Mail Radio Tv Display
Which channels do you see declining in 2015?
48%
39%
35%
24%
14%

6. Omni-channel marketing is still immature, but growing quickly
Prediction: it may be several years until everybody has a unified view of customers
0
22.5
45
67.5
90
112.5
Don’t have a cohesive
omni-channel
marketing strategy
Don’t have a single
solution to manage
campaigns across all
channels
Don’t have a unified
view of their customers
86% 83%
68%

7. Omni-channel marketing is still immature, but growing quickly
Prediction: 2015 will be a year for investments in customer profiles and omni-channel
0
15
30
45
60
of those who don’t have a unified
view of the customer, plan to
invest in this area in the next 12
months
of those who don’t have a cohesive
omni-channel marketing strategy
plan to improve in this area in the
next 12 months
56%
42%

8. There are still significant obstacles to delivering omni-channel experiences.
Prediction: A new generation of omni-channel marketing solutions will emerge.
0
6.25
12.5
18.75
25
31.25
Understaffing Lack of access to customer data Siloed marketing solutions
What are the top road blocks to omni-channel marketing?

9. Poor data quality makes it difficult to implement predictive marketing
31%
55%
14%
Yes No Planning in the next 12 months
Prediction: Data cleansing will rise in priority during 2015
Do you de-duplicate, cleanse or update customer profiles daily?

10. The use of predictive analytics by marketers is on the rise
Prediction: By the end of 2015 most marketers will use some form of predictive analytics.
0
8
16
23
31
39
31%
24%
Marketers who don’t use any predictive analytics in their marketing
2014 2015
The use of predictive models in marketing increased 29% in the past 12 months.

11. Many marketers are running one form of personalized campaign or another
Prediction: No marketer will rely exclusively on batch and blast campaigns
0
8
16
23
31
39
87%
91%
Marketers who run at least one personalized campaign:
2014 2015

12. 2014 2015
Abandoned Cart 39% 55%
New Customer Welcome 53% 54%
Email Retargeting 36% 51%
Post Purchase Recommendation 24% 28%
Lapsed Customer Win Back 30% 27%
VIP Customer Program 26% 27%
Many marketers are running one form of personalized campaign or another
Prediction: No marketer will rely exclusively on batch and blast campaigns
Which of the following programs have you completely implemented?

13. Campaigns that rely on predictions are not yet widely adopted
Prediction: There will be an increase in the use of likelihood to buy models
Are you running each of the following predictive marketing campaigns?
0
7.5
15
22.5
30
Lapsed customer win back VIP Customer Program
Pre-purchase Recommendations Pro-active Touch of at Risk Customers
27% 27%
18%
7%

14. Key Take Aways
• Omni-channel marketing is still immature, but
growing quickly
• Most marketers use some form of predictive
models, and some form of personalized
campaigns.
• It will rapidly become unacceptable to run only
batch and blast campaigns.
• Many marketers still lack a unified view of the
customer and data cleansing.
• Omni-channel marketing and a unified view of the
customer are huge investment areas for marketers
in 2015.