2nd Annual Predictive Marketing

Survey January 2015

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

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

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%

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%

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%

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%

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?

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?

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.

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

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?

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%

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.