Tom Cole, CEO at RDA weighs in on a recent article from Business 2 Community - "Data simply allows you, with a great deal of certainty, to create the opportunity for you to offer what your client may want."
According to an IBM survey of over 700 CMOs, one of the top four priorities this year is to “inject data-driven insights into every marketing decision.”
We all know how valuable data is — just look at the hundreds of data and marketing analytics vendors that have sprouted up in the last few years for confirmation. The problem is, most of us aren’t using data anywhere near its full potential.
And that’s crazy when you think about how much we’re investing in data and all we could be doing with the data and technology that exists today.
So here are 18 stats about the state of marketing data and analytics, that I hope, will motivate us all to take data seriously and work hard to overcome whatever challenges keep us from using it to its fullest.
Marketers Still Struggle With Measuring Performance and ROI
1. Marketers are expected to spend over 11% of their total budget on analytics. (Source: CMOSurvey.org, via HBR.org). It’s no surprise CMOs are pouring money into marketing analytics, but what is disturbing is how often analytics are not driving tangible business value, as you’ll see in the stats below.
2. Only 22% of marketers say they have data-driven marketing initiatives that are achieving significant results. (Source: Forbes Insights and Turn)
3. Only 44% of CMOs say they can measure ROI. (Source: Convince and Convert). I know calculating ROI is hard, and with the customer journey being highly fragmented and complex, it’s not a perfect science. But we’ve got to get better at this. Knowing what works is the only way to get better at our jobs.
4. 84% of marketers cannot measure and report on the contribution of their programs to the business. (Source:ITSMA/Vision Edge Marketing)
5. Only 29% of marketers are getting credit for the inbound calls they drive. (source: Invoca)
6. Only 21% of marketers are employing analytics to measure marketing ROI for all marketing engagement. (Source:Forbes Insights and Turn). While it’s safe to say most marketers are measuring their performance in some way to some degree, the truth is, the vast majority aren’t measuring all marketing engagements or interactions. These blind spots lead to uninformed marketers who make bad decisions.
The Customer Experience is Suffering Without Data and Marketing Analytics
7. Only 25% of marketers are collecting customer data. (Source: Forbes Insights and Turn). Customer data is what allows us to more effectively market to customers, right? In the age of the customer, we have got to know our customers inside and out.
8. Over 75% of B2B businesses lack industry and revenue information for leads in their database. (Source:Dun&Bradstreet;/NetProspex). When marketing to other businesses, you want to know as much as you can about their industry and their potential budgets. Without that information, you’re going to waste a lot of time and resources, not to mention, send a whole lot of irrelevant messages to your leads.
9. 66% of B2B leads are missing a contact phone number. (Source: Dun&Bradstreet;/Netprospex). When gathering customer information, phone numbers are an important piece of information. Without it, you’re missing out on one of the easiest ways to contact your customers.
10. Only 10% of US marketers are able to measure the customer experience “extremely well;” 24% said they could do so “moderately well.” (Source: eMarketer)
11. In terms of eCommerce challenges, 78% of UK and US eCommerce decision-makers don’t understand why customers may struggle with their website. (Source: eMarketer). Ideally, customers won’t struggle with our websites, but sometimes they do. Which is why more than 22% of businesses should be aware of how customers use their site. Isn’t this the foundation of A/B testing and optimization?
12. Only 16.6% of marketers use marketing analytics to inform multi-channel marketing. (Source: CMOSurvey.org, via HBR.org) Data is the only way to connect the dots between channels and devices so customers have a consistent and personal experience. This is how marketers are going to win.
Social Media Analytics Have a Ways to Go
12. 75% of B2B companies do not measure or quantify social media engagement. (Source: Satmetrix ). It seems B2B companies are on the bandwagon when it comes to social media.
13. 60.2% of marketers are looking for analysis options, as well as other analytics options, in their social media management tools. (SEOmoz/HubSpot). We love that marketers are looking for tools and analytics to help them with their social media. However, social media has been around long enough that they should already have analytics in place.
14. 53% of social media marketers don’t measure their success. (Source: HubSpot) How are these social media managers keeping their jobs?
ROI is in Trouble
15. 54% of marketers are not sure if their marketing technology investments are producing tangible business value. (Source: CMO Council). Investing in marketing technology is a great start to getting the data you need. But not being able to track how those investments are contributing to the bottom line is not great.
16. Only 36.6% of companies use analytics to drive customer acquisition. (Source: CMOSurvey.org, via HBR.org) Wait, I thought data and marketing analytics were the keys to improving your targeting, delivering relevant messages, and creating personalized, omnichannel experiences that turn prospects into life-long customers?
17. Companies that don’t regularly maintain their database see 34% lower conversion rates than those that do. (Source: Dun&Bradstreet;/NetProspex). If you’re working with incorrect or outdated data, you can expect lower conversion rates and lower profits.
18. Companies that don’t put data at the center of their marketing and sales decisions are missing out on a 15-20% increase in marketing ROI. (Source: Forbes)
Numbers don’t lie. Data and marketing analytics have to inform us and move us toward better decisions. I hope these stats are a wake-up call to any marketer who can’t demonstrate the real-life value of their data and analytics. The potential is there. It’s time we start taking advantage!