Predictive Analytics – Why Everyone Wants to Do it, But No-one Knows Why
In our recent Emerging Trends report, predictive analytics was highlighted as the next big trend in digital marketing, with over 44% of marketers planning to use it within the next 12 months; even so, a massive 16% admitted to having no idea what was meant by ‘predictive analytics’ and a further 50% believe their organisation needs to get better at understanding how to use them.*
Predictive analytics is, quite simply, the use of data to try to predict what is likely to happen in the future. In marketing, advancements in tracking and reporting tools mean that marketers now have access to almost every aspect of their activities; from sales and customer data, provided by CRM solutions, to web analytics, social statistics and email reporting. However, having access to this information and being able to easily view, compare and interpret it, are two very different matters.
Over 73% of marketers surveyed admitted that they’re still using multiple platforms to manage email, social, web analytics and CRM information- for these respondents, predictive analytics will prove to be an almost impossible task.
Aside from compiling data, marketers need to consider how they can collate and present it in a way that will be easy to monitor, compare, report and action, if they are to have any chance of using it to make meaningful predictions about the future of their marketing activities, or the business as a whole.
So, if you’re still using multiple platforms, and you’re hoping to make predictive analytics a reality in 2014, perhaps your first step should be to create an environment in which predictive analytics can actually happen?
*Emerging Digital Marketing Trends, Australia & New Zealand 2013, Sitecore:
https://www.sitecore.com/Resources/Index/White Papers/ANZ Emerging Trends in Digital Marketing