Forbes Insights: The ROI of Predictive Marketing
An overwhelming majority of executives with experience in predictive analytics indicate the technology has already delivered a positive return on investment. More highly experienced enterprises report greater sharing of data and higher levels of automation.
(Editor’s Note: This is an excerpt from our research with Forbes Insights. Get your full copy of the report here.)
Predictive marketing is a journey that brings about significant growth and opportunities for organizations. As with any promising transformation, it requires a learning curve to develop, in terms of both organizational learning as well as individual skill levels. Those companies further along with predictive marketing—that are highly advanced or with several years of experience—are already demonstrating results. Predictive marketing efforts have quickly delivered results for the investments made, delivering more targeted and smarter marketing campaigns. Any successful predictive marketing initiative brings together many parts of the enterprise. Organizational support and business involvement is key.
The study identified distinct stages of growth in the predictive marketing journey. Many of those organizations high on the maturity curve have had predictive marketing initiatives under way for five or more years. The three stages of development among organizations that are currently working with the technology include the following:
- Early-stage organizations, which are piloting, experimenting or launching their first efforts, make up 31% of respondents. Twenty-eight percent of this segment plan implementations within the next six months, while 47% have had efforts under way for up to a year.
- Advancing organizations, including 42% of survey respondents, are those who report that their predictive marketing efforts have been completed in parts of their businesses, and these programs have delivered results. Of this segment, 39% indicate they have had efforts under way for a year or more.
- Highly advanced organizations, identified by 13% of executives, consist of those who confirm that predictive marketing is a core function within most or all of their marketing initiatives. They are the most experienced segment as well—45% state that they have had initiatives under way for five or more years.
Predictive marketing initiatives that have been under way for some time are delivering impressive results. A vast majority of marketing executives that have been overseeing predictive marketing efforts for at least two years (86%) report increased return in investment (ROI) as a result of their predictive marketing. Only a handful, 5%, indicate they have seen no impact or a decreased return.