In a previously published article, we provided numerous tips to help Chief Marketing Officers (CMOs) capitalize on the success of marketing campaigns. One area of focus was the collection and analysis of data before, during, and after a campaign. In the article, it is mentioned that the amount spent on data analysis should equal the amount allocated to advertising.
In a recent CMO Survey, sponsored by the American Marketing Association among others, it is reported that the percentage of marketing budgets companies plan to allocate to analytics over the next three years will increase from 5.8 percent to 17.3 percent. That is a 198 percent increase! However, top marketers report that the effect of analytics on company performance is minimal. How can this be?
In many situations, it is the case of too much data. The collection and analysis of data is often driven by investment in technology infrastructure as opposed to a clear marketing strategy. In many instances, data collected by different systems is disjointed and difficult, if not impossible, to use. For example, in the consumer market, retailers expect the analytics collected to highlight consumer interests and buying habits. However, in many cases data scientists are pulling raw data together from a myriad of sources – a large percentage of which, in the end, will prove to be unusable – instead of providing useful insights into customer behavior based on a single, comprehensive set of data.
What can organizations do to realize the promise of data analytics? How can organizations use data analytics to their benefit? The answer to these questions lies in how the people within an organization interpret and use data. Here are some areas organizations need to consider:
Organizations benefit from data analytics by taking a holistic approach. It is important to understand that company goals, market requirements, and customer loyalty need to be aligned and clearly stated.
Statistics coupled with a strong understanding of human psychology and economic theory can offer deep insights into consumer behavior.
In many cases, marketing professionals are counting on data to answer a specific question, such as how a certain promotion is affecting sales. However, they should also be using data to reveal how promotions are impacting brand equity and loyalty.
The presentation of data is almost as important as the data itself. Presentations should be organized around insights and should communicate how actions are related to results.
Some marketing analysts excel at math and coding while others are proficient at business theory and strategy. Successful data analytics is dependent upon a team approach to align analytical resources with marketing strategy.
By investing in a combination of people, systems, and data tools, organizations have the opportunity to rethink their data strategy and use analytics to their benefit. At Shugoll Research we offer strategic consulting to help business make better decisions. Visit our website to learn more about the wide range of industry sectors that we work in. If you have questions, please don’t hesitate to contact us.
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