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

AgilOne Report

The AgilOne Retailer Survey

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.

How well have retail marketers adopted data-driven marketing practices, and what are they planning for 2014?

The big data revolution is happening

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.

YES51%

NO20%

Planning in the next 12 months

29%

Survey Question and ResponseHave you built a central customer data warehouse?

Prediction 1

Less than 1/3 of retailers currently have a complete picture of their customers

More companies will integrate offline, call center and loyalty transactions with their online customer data.

Survey Question and ResponseWhat types of customer data do you include in your warehouse?

Prediction 2

OnlineTransactions

76% 69% 47% 44% 30% 27% 16%

EmailEngagement

Offline Transactions

WebsiteClicks

CallCenter

Conversions

LoyaltyPoints and

TransactionsNone of

the Above

Predictive analytics is quickly becoming mainstream

By the end of 2014 nearly 70% of retailers will be using predictive analytics for at least one of their channels.

Survey Question and ResponseAre you using predictive analytics in your marketing?

Prediction 3

YES44%

NO31%Planning in the

next 12 months

25%

Likelihood to buy is the most popular predictive model

Marketers will move beyond using likelihood to buy predictions and will begin to utilize recommendations, customer clusters and likelihood to churn predictions.

Survey Question and Response

For those who use predictive models, which of the following predictive models do you use?

Prediction 4

ProductClusters

PredictedLifetime

ValueCross-Sell

Recommend

BehavioralClusters Upsell

Recommend

Likelihood to

Churn

Likelihoodto

Engage

BrandClusters Next-Sell

Recommend

Predicted Share of

Wallet

41% 41% 41% 37% 33% 31% 29% 27% 24% 14% 12%73%

Likelihood to

Unsubscribe

LikelihoodTo Buy

Most marketers are only using predictive analytics for email

Predictive modeling will move beyond email and direct mail to include social media and offline transactions.

Survey Question and ResponseFor those who use predictive models, in which of the following channels are you using them?

Prediction 5

Email

82% 41% 31% 20% 12% 4%

DirectMail

Social WebsitePhoneCall

Center

Brick andMortarStores

Nearly 70% of retailers will be doing customer segmentation by the end of 2014.

Survey Question and ResponseAre you using predictive (clustering or other) models to segment your customers?

Prediction 6

YES44%

NO32%Planning in the

next 12 months

24%

Customer segmentation becomes a must

Customer retention marketing is becoming a priority

In 2014 marketers will move beyond new customer welcome campaigns and (finally) launch abandoned cart campaigns, customer win-back, and VIP appreciation programs.

Survey Question and ResponseWhich of the following programs have you completely implemented?

Prediction 7

NewCustomerWelcome

53% 39% 36% 30% 26% 24% 16%

AbandonedCart

Campaign

EmailRetargeting

LapsedCustomerWin-back

VIPCustomerProgram

PostPurchase

Recommend

13%

None of the Above

Pro-active Touch of At-risk

Customers

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.

Survey Question and ResponseAre you allocating marketing dollars to programs and channels based on predicted lifetime value?

Prediction 8

YES26%

NO31% Planning in the

next 12 months

43%

Marketers are choosing channels based on predicted lifetime value

By the end of next year, almost half of marketers will have tried Facebook lookalike campaigns to acquire more valuable customers.

Survey Question and ResponseAre you using Facebook lookalike audiences to find customers similar to your best (most valuable) customers?

Prediction 9

YES36%

NO51%

More marketers discover Facebook lookalike campaigns

13%Planning in the

next 12 months

YES39%

NO50%

More marketers will learn to use data

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 ResponseDo you have an in-house resource to CREATE predictions and analytics?

Prediction 10

Survey Question and ResponseDo you have an in-house resource to USE predictions and analytics?

YES63%

NO26%

11%Planning in the next 12 months

11%

Key Takeaways

• Retailers that do not invest in building a central customer data warehouse and predictive analytics will quickly fall behind.

• 80% of retailers will have some form of central customer data warehouse and 70% will use some form of predictive analytics within the next 12 months.

• Most retailers still have work to do to get all customer data in one place, specifically offline data, and to expand the use of predictive analytics beyond email.

• Those who implement a central customer data warehouse can reduce marketing campaign costs 5x, and those who run predictive campaigns have up to triple the margins.

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.

info@agilone.com (877) 769 3047