A new Data Driven Marketing report by Oracle and Forbes has found that 75% of marketing executives don’t see a return on their investment within a year. And while 71% of participants stated that quantifiable research is the best way for businesses to achieve sales, 60% shape their campaigns with data less than half the time and 53% aren’t using data as a competitive advantage.
These statistics suggest that while marketers understand that data is the key to success, implementing data insight across campaigns is a challenge.
Setting up Analytics Properly
The importance of having Google Analytics set up properly – and tracking KPIs that reflect business objectives – cannot be underestimated. This will help to effectively target spending; 55% of marketing executives stated that applying data and analytics effectively proved successful.
Marketing is now becoming largely driven by data, with 65% of those surveyed allocating more than a quarter of their budget to data and analytics. However, only 9% believe themselves to be market leaders in data-driven marketing, showing that there are still issues around using data effectively. Those who do lead in this area put data at the heart of every marketing campaign, and are advanced in implementing cross-device marketing campaigns.
They also use analytics more extensively and take advantage of third-party data as much as first-party data, which is proprietary, corporate information.
Implementing a Sound Strategy
Some industries practice data-driven marketing more than others, including consumer and retail, financial services, healthcare, pharma and life sciences, and technology. Sectors which are behind in this area include manufacturing and industrial products companies and media firms.
One of the top causes for hindering forward progress is the undervaluing of analytics, along with having the right skills to use analytics properly. Cross-platform strategies are still maturing, which can pose challenges in terms of accuracy, but does offer advantages in term of customer insight when targeting multiple devices. This type of strategy requires enough resources to educate staff properly and a sound level of communication between CMOs and senior executives.
Measuring Data Effectively
On the whole, marketing teams need to be able to measure effectively using the right tools, and look at customer behaviour across multiple devices. At the heart of this is attribution, which must be used to prioritise spending.
However, it is crucial to remember that while considering device is increasingly important, reaching the right consumers is still the key aim. Data management platforms (DMPs) are also vital to connect with a wide range of marketing resources, while the value of these platforms must be understood by people within the organisation.
CRM and digital media teams must collaborate on how best to use the DMP in order to expand the targeting pool. The strongest analytics teams have a mix of specialists, with knowledge incorporating both the technical and the business implications of using data to strengthen the marketing strategy. Identifying high, medium and low-volume consumers allows effective tailoring of campaigns, while it is also important not to be overwhelmed by large amounts of data and consider how new data affects strategy. This is worth investing time in, considering how it fits into the overall strategy rather than rushing into analysing any data which comes along.
The most crucial thing to remember in using data analysis as part of a long-term strategy, is to be willing to adapt and improve tactics. This will allow for dealing properly with any new challenges and opportunities which come along.
Return can run a Google Analytics audit on your business to help you improve your data-driven marketing. We also offer cost-effective training to help equip your marketing team with the right skills to use data effectively.
Contact us today to see what we can do for you.