Predictive analytics use in European retailers is at a far more advanced level than US counterparts even though the usage isn’t as widespread as companies across the pond.
Research from software-as-a-service [SaaS] based analytics firm AgilOne found that whilst fewer European retailers are making use of predictive models, firms were using them in more channels and more diverse ways than those in the US.
“Europeans are using predictive analytics more and more, creating very advanced campaigns. We expect to see expanded adoption in 2014. The retailers using predictive analytics to predict their buyer’s next move will greatly set themselves apart from the competition,” said Paul Gibson, regional director for EMEA at AgilOne.
When it comes to having predictive models in place at European retailers, there was an even split between those that do and those that don’t plan on using them at all [45.5 per cent each] with the remaining nine per cent planning to implement them in the next year.
In terms of central customer data warehouses only 36 per cent of European firms have done so compared to some 51 per cent of US retailers doing so, although 27 per cent of European retailers plan to build one in the next year.
“It seems US retailers could learn from some of the advanced predictive analytics methods European retailers are using today, and there is certainly room for the European market to grow in their use of big data marketing. There is a significant opportunity for European companies to take advantage of predictive analytics to gain customers for life,” stated AgilOne CEO Dr. Omer Artun.
European retailers are also lagging behind when it comes to linking data across channels to a single customer ID as just 36 per cent have done this compared to 50 per cent of American retailers.