Are Companies Far Along in Their Predictive Analytics Implementation? - eMarketer

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Are Companies Far Along in Their Predictive Analytics Implementation?

More respondents are in the investigating phase compared to a year prior

September 1, 2016 | Marketing

Last year, nearly half of US executives said their company was in the deployment phase of production for predictive analytics. However, their efforts haven’t translated to successful deployments a year later, research from Deloitte found.

Implementation of Predictive Analytics at Their Company According to US Executives, 2015 & 2016 (% of respondents)

In 2016, just 25.1% of US executives said their company’s current use of predicative analytics could be described as mature, meaning they’ve had successful deployments. But given that a large percentage of respondents (41.5%) said their company was in the deployment phase of production last year, more respondents might have expected successful deployments a year later.

That hasn’t happened, however. This year, nearly a third of US execs said their company was in the building phase for predictive analytics—down from last year. But it’s likely that the deployment phase of production didn’t work out for them, and some had to go back to the drawing board: In this case, the investigating and experimenting phases, both of which gained in share since last year.

Obstacles to Investing in Predictive Analytics According to Client-Side Marketers Worldwide, May 2016 (% of respondents)

For example, last year, 12.0% of respondents said their organization was in the investigating phase—they were interested in potential opportunities predictive analytics offers. A year later, more respondents said their company was investigating their company’s implementation of predictive analytics. Additionally, slightly more respondents are in the experimenting phase compared to last year, meaning they are currently piloting projects or in the stages of planning them.

Predictive analytics may be gaining plenty of traction with many marketers, but even so, many continue to hold back due to factors like a lack of budget, siloed teams and a lack of internal knowledge. A May 2016 survey from Econsultancy found that 40% of agency professionals said lack of budget was a key obstacle. On the client side, 32% of respondents said siloed organizations were holding back their predictive analytics strategies, while 30% mentioned the lack of internal knowledge.

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