Radius: How Predictive Analytics Solves the Biggest Market Expansion Problem

2015_10_f1By John Hurley, Radius Product Marketing Director

The CMO’s task of “growing the business” can entail entering new markets, finding different buyers or developing new products-sometimes a combination of these things simultaneously. SiriusDecisions found that the top strategy to fuel revenue growth for business-to-business enterprises is to enter new markets. However, a McKinsey study found that 3 out of 4 new market attempts fail.

The culprit in all of this? We think we have the answer. A recent study of over 100 B2B CMOs that we commissioned with Forrester Consulting found that the #1 barrier to growing longer revenue contribution is limited visibility into addressable markets. This surpassed the challenges that typically plague marketing organizations, including lack of funds for new technology and difficulty implementing given existing infrastructure.

Lack of visibility into addressable market can devastate a company’s growth plans for a number of reasons. Failure to understand the true size of market opportunities can lead a company to mistakenly target a less lucrative market. Misunderstanding the needs and habits of a given segment can lead to targeting a market that is unlikely to convert and thus a waste of time and resources.

Our study showed that predictive analytics is the solution. With almost all users (97%) saying that they use predictive analytics to analyze their best customers to understand how and why they buy, and with these users seeing 2x the success in significant revenue growth, market share leadership and contribution to business goals, predictive analytics provides the marketing intelligence to help CMOs effectively and successfully grow the business.

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