Are Your Analytics Up to Snuff?
Posted by Resource Nation on December 5, 2013 in Business Technology, Web 2.0 [ 0 Comments ]
Not just another buzzword, big data has transformed the way businesses run. The plethora of information at the fingertips of consumer-driven companies is staggering. Those that haven’t taken advantage of the information that Web-based analytics have to offer shouldn’t wonder why the CEO and CFO are red in the face trying to understand the reasons behind failing marketing campaigns and poor customer service results. You might believe the members of this group would be small. However, Duke University’s Fuqua School of Business recently surveyed chief marketing officers from across the U.S. to investigate the extent to which these high-ranking executives are using the data at hand.
Marketing Executives Shying Away
If you happened to turn over a magic eight ball for some insight, you might get “Outlook not so good” as the response. The research found CMOs have used marketing analytics for their projects an estimated 29 percent of the time – last year 35 percent had done so. Moreover, nearly 66 percent of chief marketing officers indicated their organizations don’t have a standardized system to measure the quality of their marketing analytics, a nearly 15 percent hike from the same time last year. What’s more the study revealed CMOs have found precipitously less value in analytics during the past year, but they keep using a guide to make decisions pertaining to digital marketing and customer acquisition and retention. What does this mean for marketing analytics? Perhaps more importantly, what will it mean for marketing? Likely, it means CMOs will need to need to dig deep to find the talent able to parse the most important information gathered through analytics.
Analytics Useful in the Right Hands
Only a handful of companies have been able to accomplish that with much vigor. Capital One, the credit card and online banking company, has invested significant resources into making analytics a tool for change. The Harvard Business Review indicated the company’s earnings per share have grown by 20 percent every year since going public. Its approach to gathering data has been intense. In fact, the credit company investigates the impact of adapting interest rates, offering incentives and updating direct-mail designs through the lens of more than 30,000 experiments each year. With such a thorough approach to analytics, the enterprise is far more likely to accurately assess how existing and potential customers will respond to their marketing campaigns and incentive programs.
With this in mind, it seems strange that the current trend is moving away from marketing analytics. At root, businesses wishing to taking advantage of analytics need to have the requisite talent to mine for the pearls.
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