Chart of the Day: Predictive Analytics Users Get Better Results
Predictive Analytics isn't a new marketing technique, but interest in it has increased with the hype around using Artificial Intelligence for Marketing. This typically involves using Machine Learning, a key AI technique for marketing, by analysis of historical results of campaigns to inform future targeting and creative.
In this research, analysts Aberdeen Group review the impact of Predictive analytics on different ROI metrics as presented in the chart below.
But, before we take a look at the results, what is predictive analytics? Aberdeen define predictive analytics as:
This is a broad definition since most marketing applications focus on analysis of structured, historical data to inform targeting of future marketing activities. This definition includes unstructured data, but the research doesn't give examples of what those might be, but one is analysis of creative like subject lines in email to develop copy for future emails, for example in the Phrasee service. Others could include review of customer service queries or social media monitoring to inform future responses.
The more general Wikipedia definition of Predictive Analytics is closer to the general understanding of predictive analytics in marketing:
So, turning to the research, the chart shows how users of predictive analytics achieve improved return on investment measured by different KPIs of business impact.
Specific technologies covered in more detail in the research include:
About the research
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