What’s the best type of data? The one that you use!
Of course, there are all sorts of qualifications to that statement. It’s estimated that bad data cost the US over 3 trillion USD last year alone. On a more micro-scale, the figures are just as astonishing. Individual companies lose on average 10-25% of an organisation’s revenue every year due to bad data, and that’s without mentioning all the wasted resources spent on postal mail that never reaches intended recipients. Adding salt into an already gaping wound is the fact that as corporate data grows by about 40% per year, business are spending even more time and resources dealing with information scrap and rework.
Analytics accelerates growth
It’s not all doom and gloom, however. The success stories are numerous and inspiring. There are rich opportunities for companies to clear up information, gather actionable insights, and ultimately see the forest for the trees. Marketing analytics can assist companies in achieving various business outcomes, especially when it comes to increasing sales, customer satisfaction, and improving current products or services.
Both B2C and B2B business are making the most of analytical tools to convert data into knowledge and knowledge into action. Companies who still use spreadsheets as their main tool for analysis will find themselves blinkered in the face of ever-increasing consumer demands and expectations. It’s just not possible for businesses to compete effectively without the right tools backed by a sound strategy. Organisations who do not have the resources to develop or conduct analysis themselves are increasingly recognising the benefits of bringing in third-party support: 55% of companies outsource some or all of their analytical needs.
Advances in digital technology are propelling data analytics and go hand-in-hand with rising reliance on data-driven insights. Global trends show that different regions are adapting to digital transformation at varying paces.
In one survey, it was found that Chinese companies are most proficient in applying advanced analytics. Of those companies who had enabled digital adoption, nearly 2/3rds of companies using advanced analytics were able to boast additional revenues of at least 15%.
Analytics drives marketing ROI
Marketers’ jobs are not getting any easier! On one hand, they have more tools at their disposal than ever before. On the other, marketers are being asked to show increasing dexterity, creativity, and innovation to meet demands in ROI, effective campaigns, and integrated analysis.
For companies seeking to gain a better understanding of their customers and to strengthen their marketing tactics, it’s time to get to grips with data. There is an abundance of tools available that offer unmissable insight into your audience and prospects. Those marketers who are most likely to succeed are the ones that deploy five or more different tools simultaneously. This ‘best of brands’ approach enables a holistic view through a pick and mix of features that are most suitable for your internal processes and for your team’s preferences and needs. This tactic of using five or more tools improves your likelihood of seeing better performance by 39%.
We’ve already seen how digital has reshaped the traditional sales funnel. Marketers are now re-examining their strategies in light of multi-faceted customer journeys with multiple touchpoints across a variety of channels. Businesses can use analytics to review different segments of their marketing journeys and identify inefficiencies and opportunities for optimisation. Changes to the strategy should reflect what the data shows and should target the segments that are not currently maximizing ROI.
It’s important to make sure that the metrics used are not creating unnecessary noise which can lead to confusion and inefficiencies. Metrics such as conversion rates, order quantities, or other measures that reflect sales or demographic should dominate strategy. Your models, dashboards, and visualisations should provide insights that allow organisations to take defined actions.
Marketing analytics is not static. Changes should be reviewed periodically to determine whether any revision is necessary. Data takes the guesswork out of strategy. Don’t allow yourself to guess the results of any improvements made.
Analytics fuels strategy
Almost 3/4 of companies who are leaders in their market have used advanced analytics to overhaul existing strategies and redefine their competitive edge in their markets. Success stories are characterized by strong, company-wide collaboration and meaningful alignment across teams. Reversing decision-making culture that has historically been based on intuition or assumption is a common pain point for companies and can prove to be an obstacle in achieving data-led strategy. Support at senior management level is crucial for enabling decision-making based on findings as well as assigning sufficient resources to implement and maintain effective analytical systems.
In today’s contemporary marketplace and players that are more competitive than ever before, an integrated analytics approach is vital for ensuring growth. To optimise their analytical tools, businesses must embark in a direction that consolidates data models with strategy. The proof is in the pudding: organisations that adhere to reliable metrics and directly relate them to company objectives are three times more likely to achieve their goals.
As a starting point to get the most out of a comprehensive, integrated analytics approach for marketing, we suggest that companies consider these three main recommendations:
1. 41% of organisations are still lacking sufficient coordination across business teams. Make sure your company considers an approach that brings together different teams and functions. Your framework needs to put in place communication processes and workflows that optimises conclusions drawn from data and gets your people working together in a meaningful way.
2. A recent survey found that insufficient resources was a main concern for managers looking to implement data analytics models. Ensure that you recruit talent capable of keeping up with the complexity level of your models, or look to third parties who can provide expert support.
3. Only 1/4 of marketers are confident that their analytic tools are properly integrated and working together, yet companies using an integrated approach improve their analytics efficiency by 90%. It’s crucial that companies integrate their various tools and marketing analytics software across their systems and departments. Disparate systems provide fractured information and are inefficient when analysed on a one-by-one basis.