Data-Driven Riddle: B2C Brands Are Trying To Refine Their Strategies


Data-Driven Riddle: B2C Brands Are Trying To Refine Their Strategies



by , Columnist, October 10, 2022

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. 


A majority of B2C firms have not yet deployed predictive analytics with machine learning capabilities, Pecan AI and Ascend2 report.

 

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