The new generation of CMOs is more data-driven than its forefathers and has a critical need for performance measurement and ROI analysis, across everything.
As I write this I am literally surrounded by hundreds of digital analytics, predictive analytics, and conversion optimisation professionals. I'm at the Data Driven Business Week again in San Francisco, attending eMetrics and Predictive Analytics World, getting my annual dose of analytics industry input, insights, and networking on this side of the pond.
As I made my way here I realized that it's been 10 years since I attended my first eMetrics gathering in Santa Barbara back in 2003. I then thought about what's changed since those early days and what maybe hasn't. For sure there have been significant changes in the technologies and the processes, and the governance around those technologies has become more robust, but one of the perennial issues that the digital analytics industry and its professionals wrestle with is "business impact." How do digital analytics professionals impact upon the key corporate decision-makers? So I came here wondering: are the analysts any closer to the C-suite?
I think from what I've seen here and from what I know that the answer is "yes." Perhaps a qualified "yes," but a "yes" anyway. The qualification is that it looks like the C-suite, and particularly the CMO, may be helping the analysts out a bit. Whereas historically "marketing" and "technology" were two words that were not often found in the same sentence, one can't now survive without the other. The new generation of CMOs is more data-driven than its forefathers and has a critical need for performance measurement and ROI analysis, across everything. In fact, it won't be too long before the marketing guys are going to be buying more tech than the tech guys, apparently.
So, on the one hand it looks like the CMOs are moving toward the analysts. They have the need in a way that they maybe didn't realize before and so soon the analysts will be knocking on open doors. In many cases this is already happening and it's great now to hear more and more stories about organizations where the analysts are able to demonstrate clear business impact and in some cases business ownership as well.
Where the analysts are meeting the CMO it looks like a couple of things are happening. First, as described, there's an awareness at the C-suite level of the importance of data-driven decision-making and the potential of analytics to produce real business impact and results. These organizations are moving up the "Analytics Maturity Curve," as described by Thomas Davenport in his book, and want to compete on analytics. The second thing that is happening is that the analytics function is reaching the level of scale and sophistication where it can actually deliver on the business needs. What's happening here?
What's clear is that you can't have business impact as an analytics function when you're only dealing with part of the overall picture. Successful analytics teams are taking the core behavioral data and enriching and enhancing their understanding of that behavior and its relevance by integrating with other digital data streams as well as offline data streams. They're able to show not just the performance of digital marketing on the online business but the total business.
The last point about resources is also a really interesting one, and there was a great example shown this week by Balaji Ram, director of site analytics and optimization at Walmart. As well as integrating data across devices and channels to get a complete view of customer behavior, Ram has a blended approach to resourcing his team from highly technical data engineers who are responsible for things like measurement instrumentation through to business analysts who work with the internal customers to deliver the insights that can impact the business. Now Walmart obviously has a bit of scale that helps it in this regard, but I don't think that Ram would own one of the company's KPIs unless he'd developed the business consulting talent as part of his team.
So, we're probably getting there. It might have taken a while and there may still be a ways to go, but the omens are good.
Image on home page via Shutterstock.
August 10-12: Revolutionize your digital marketing campaigns at ClickZ Live San Francisco! Educating marketers for over 15 years, our action-packed, educationally-focused agenda covers every aspect of digital marketing. Early Bird rates available through Friday, July 17 - save up to $300! Register today.
Neil Mason is SVP, Customer Engagement at iJento. He is responsible for providing iJento clients with the most valuable customer insights and business benefits from iJento's digital and multichannel customer intelligence solutions.
Neil has been at the forefront of marketing analytics for over 25 years. Prior to joining iJento, Neil was Consultancy Director at Foviance, the UK's leading user experience and analytics consultancy, heading up the user experience design, research, and digital analytics practices. For the last 12 years Neil has worked predominantly in digital channels both as a marketer and as a consultant, combining a strong blend of commercial and technical understanding in the application of consumer insight to help major brands improve digital marketing performance. During this time he also served as a Director of the Web Analytics Association (DAA) for two years and currently serves as a Director Emeritus of the DAA. Neil is also a frequent speaker at conferences and events.
Neil's expertise ranges from advanced analytical techniques such as segmentation, predictive analytics, and modelling through to quantitative and qualitative customer research. Neil has a BA in Engineering from Cambridge University and an MBA and a postgraduate diploma in business and economic forecasting.
US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.
E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.