Findings of a recent survey suggests that while most CMOs remain reluctant to adopt predictive analytics, those who embrace the technology are leapfrogging their counterparts, with lift typically from 10 to 25 percent, with some reporting 50 percent or higher.
The latent potential of predictive analytics is one of several key findings in ClickZ’s recent research report, “The What, Why and How of Predictive Modeling.” Keen Decision Systems sponsored the independent research to get a pulse on how marketers perceive the opportunity to leverage technology-enabled decision-support to better measure and impact marketing’s financial outcomes. Here’s a recap of some key takeaways. Download the full report here.
- Two-thirds of respondents do not currently use any form of predictive modeling.
- The overwhelming evidence is that when predictive modeling is used, it drives strong uplift in marketing performance: 58 percent of respondents report a 10-25 percent uplift and 19 percent saw a more than 50 percent uplift.
- More than half (54 percent) of businesses not using predictive modeling are not sure if they will ever implement the technology.
- Data has a half-life: If it is not acted upon swiftly, its value quickly deteriorates. Marketers are acutely aware of this, with 78 percent of marketers surveyed saying they have missed opportunities due to slow or inaccurate decision-making.
- Correct audience targeting is key to marketing success; 70 percent of marketers surveyed claim predictive modeling positively impacted their understanding of target audience.
- Brands have hundreds of pieces of creative running in digital formats at any given time. The challenge is to know what creative is working—and why. Forty-three percent of survey respondents say creative is the third greatest area of impact for predictive modeling.