Data-Driven Riddle: B2C Brands Are Trying To Refine Their Strategies
Brands have a long way to go before they get the maximum benefit from their data, judging by The B2C Perspective on Using Data to Predict Future Performance, a study from Pecan AI, conducted by Ascend2.
Most B2C firms have not deployed predictive analytics with machine learning capabilities. Those surveyed are:
- Currently using — 8%
- Planning to use in the next year — 27%
- Would like to use but have not made plans yet — 40%
- Not currently using or planning to use — 25%
Moreover, it’s not clear that they are going to invest in these capabilities.
Only 6% are significantly increasing their budget for data-driven marketing initiatives in the year to come. Another 38% are planning moderate hikes, while 46% will remain the same and 10% expect decreases.
Despite all that, 72% say they somewhat successful in using data-driven marketing to achieve their goals, but only 17% are very good at it, or best in class. However, a mere 11% admit they are unsuccessful.
They face several hurdles in extracting accurate predictive insights from their data:
- Implementing a strategy to get started — 35%
- Data requires a lot of cleaning and engineering — 15%
- Inadequate data science resources — 12%
- Unable to make the results actionable — 11%
- We do not use predictive analytics — 27%
Here’s one more challenge. When asked if they have prepared their data-driven strategy to accommodate the loss of third-party cookies, they:
- Strongly agree — 9%
- Somewhat agree — 44%
- Somewhat disagree — 31%
- Strongly disagree —16%
But let’s look at the bright side. According to those surveyed, the chief benefits of data-driven marketing are:
- Improving the customer experience — 61%
- Increased personalization — 51%
- Improving data tools and integration — 26%
- Using predictive analytics — 25%
- Aligning online and offline data — 21%
- Improving omnichannel marketing — 14%
- Increased first-party data collection/use — 13%
- Using AI/machine learning — 7%
And, these are the areas in which data-driven marketing is most useful:
- Customer experience/journey mapping — 51%
- Personalization — 43%
- Email marketing — 39%
- Paid advertising — 31%
- Product/service development — 30%
- Forecasting/results/performance — 20%
- Omnichannel marketing — 5%
Ascend2 surveyed 219 marketing professionals. Of these, 12% work in enterprises with more than 500 employees, 14% in firms with 50 to 100 and 74% in companies with fewer than 50.