Big Data, Big Deal?
Big Data is, well, a big buzzword right now. Solution providers are working furiously to solve the challenge of big data. Many organizations are exploring big data usage and are left wondering, “Should this be a strategic focus?” According to The CMO Survey, approximately 5.5% of marketing budgets currently are spent on marketing analytics, and this is expected to increase by 58% in the next three years! Capturing, analyzing, and visualizing large data sets is a tremendous feat, but making decisions based on that data is even more taxing. Before an organization considers “going big”, it needs to start small.
With this in mind, we sought to analyze to which degree marketing analytics is being adopted in various industries. The thought begs many questions, including: Is there a correlation between the number of reports executed, and the performance of marketing communications? Are the companies pulling and analyzing more data making smarter business decisions based on the results?
When evaluating our customer data by industry we see that an increase in reports generated results in a corresponding increase in engagement, with engagement being measured by forms submitted and emails clicked. A logical conclusion is that companies that analyze marketing performance can better implement A/B testing, identify and exploit top performing web pages and social channels, develop more accurate personas, and more successfully tie revenue to marketing activity.
Who’s Out Front?
Life Sciences, Services, and Retail are leading the way in the use of data analytics. Over a 12 month period, they all began to increase their data analysis and saw an uptick in their marketing performance. On the other hand, Finance, Education, and Non-Profit decreased their evaluation of marketing metrics – and experienced a decline in their engagement.
Based on the engagement performance, it appears that Life Sciences, Services, and Retail are better positioned to explore big data opportunities. Does this mean only those organizations evaluating marketing analytics should consider a big data strategy? Not necessarily, but they may be better poised to execute on big data and see faster returns on their big data investment.
Click here to view our Analytics Worksheet for the scoop on how analytics can help your teams drive smarter decisions, complete with a Blueprint to help map out your execution steps to success!