Predictive analytics is the practice of extracting information from existing data in order to determine patterns and predict future outcomes and trends. Predictive analytics does not tell you what will happen in the future. It forecasts what might happen in the future with an acceptable level of reliability, and includes what-if scenarios and risk assessment.
The global predictive analytics market to grow from USD 2.74 Billion in 2015 to USD 9.20 Billion by 2020, at an estimated compound annual growth rate (CAGR) of 27.4%. The predictive analytics market is growing rapidly because of the transformation from traditional Business Intelligence (BI) techniques to advanced analytics techniques and massive surge of structured and unstructured data. Details are as follows;
An industrial level study highlights that predictive analytics users are twice as likely to perform well in key business metrics compared to those who use traditional analytics. Specifically, 83% of B2B companies leveraging predictive analytics see “considerable or very high” business impact, noting a higher possibility to exceed marketing goals, have a higher market share and see annual revenue growth steadily increase.
More than half (i.e., 61%) of B2B companies have already implemented predictive analytics into their marketing strategy. Predictive analysis can help alleviate B2B marketing pain points according to a market study. The limited visibility into addressable markets is the No.1 challenge for B2B companies. A few findings of such market study as follows
- More than half (55%) of predictive users track conversion rates, compared to the 36% of nonusers
- Roughly 80% of predictive users have a standardized marketing platform, compared to the 34% of traditional analytics users
- Almost every predictive user (97%) understands how and why their customers buy, and 92% optimize their marketing mix to reach the right buyers.
- 89% of respondents noted that predictive capabilities can help B2B marketers identify net-new leads and customer opportunities. This blog is written by Bhoopal Ram, Sr Analyst with DART Consulting.