For this week’s predictive marketing news roundup, we are asking just one question: with so many amazing statistics coming out about the returns you can expect from predictive analytics, why are not more marketers getting started right now?
Some of the stats from this week:
- $200 billion in incremental value by using marketing analytics
- 94% of marketers see higher engagement and conversions using customer data
- Companies that focus on customer experience see 60% more profit
- 90% of marketers believe data is a game changer
- Puma used personalization to increase revenue per visit by 69%
- 59% of companies say that analysis of digitally derived customer data is key to innovation
So why don't more marketers start today? This weeks news seems to indicate that marketers don’t know how to wrangle data and solve the data collection, integration, and quality problem – and are not aware of the fact that in recent years easy to use, affordable solutions have become available to help.
Are CMOs wasting money on faulty marketing analytics? – VentureBeat
McKinsey found that Worldwide, marketers can gain as much as $200 billion that can be reinvested by companies or drop straight to the bottom line,” researchers wrote in a June 2014 article. Sirius Decisions, estimating companies spend $100 per inaccurate data record on things like poor lead generation and sending direct-mail marketing to the wrong addresses. Now imagine your marketing database houses 100,000 records, and 20 percent of those contain errors. Multiplying $100 by 20,000 reveals your organization throws away about $2 million annually in marketing dollars because of poor data quality.
Data’s Shortcomings Are Personalization’s Kryptonite – 1to1 Media
This article features findings from Econsultancy's "Customer Experience Optimization Report". The reports key take away: Focusing on customer centricity is a priority for many as it allows companies to cultivate loyalty, thereby creating an engaged customer base. But, while such efforts provide clear value and a distinct competitive advantage, most organizations are not yet positioned to deliver the most relevant, personalized experiences possible. What blows our mind is that 94% of marketers report higher engagement and conversions by personalizing experiences using customer data, but that still only 41% prioritize it. With tools to make collecting, analyzing and using customer data easy and readily available, how can you afford not to get started.
Predictive technology drives evolution of big data - MultiChannelMerchant
Several years ago the Internet revolutionized the way business is done. Now the world finds itself on the precipice of a similar revolution with big data. Studies show that nearly 90% of professionals believe big data is a game changer for today’s hyper-competitive marketplace. An especially powerful component of this latest revolution is the use of predictive technologies to foresee customer behaviors. According to Gartner, companies that focus on customer experience generate 60% higher profits than their competitors. For example, Puma uses personalization and has achieved a 69% increase in revenue per visit, without increasing labor costs. It's hard to believe that not everybody is focusing on implementing predictive analytics.
Are you tapping into your customers' 'digital halo'? – Information Age
Every digital click, swipe, 'like', buy, comment and search produces a unique halo of customer information - are you doing all you can to unlock their value? 59% of companies say that analysis of digitally derived customer data is key to innovation, yet only 24% claim to be effective at collecting and using it effectively.
The traditional view aligns the technology capabilities by channels. Could these be realigned against consumer behavior or needs? The consumer and business centric approach will organically force you out of a channel mindset and make it possible to deliver channel agnostic experiences. To do this, establish a single view of the consumer across the traditional silos. Connect the data across touchpoints. Then orchestrate experiences across channels. Amen!