The use of advanced analytics in marketing has been fundamentally stifled by challenges related to data silos. Marketers need to get all their data scattered across silos into one location.
Firefighters contained the San Diego wildfires that raced across communities in California in May after many anxious days - but not before a group of analytics thought leaders and data scientists was evacuated from a conference here almost in mid-sentence. The Anametrix Customer Advisory Board had gathered under the region's blue skies with a clear focus: raise the bar on how marketing can better engage customers using advanced analytics. But then the wildfires broke out. Disruptions aside, board members - who represented diverse companies and interactive digital agencies - found a great deal of unanimity about the direction that data analytics is taking during the few memorable days we spent together in San Diego.
The market is maturing rapidly. Marketing teams increasingly know what they want from their data. In fact, more and more marketing organizations aspire to do advanced analytics for deeper and more actionable insights. Yet results can be elusive. Accenture survey research in 2013 found that 68 percent of executives were committed to analytics. Two out of three companies surveyed have added senior staff in analytics and the use of predictive analytics is up three-fold since 2009. But only 20 percent of those surveyed reported being happy with the business results of their analytics programs.
Meanwhile, the data technology and services market continues its record of explosive growth, according to IDG analysts. This market is forecast to grow at a compound annual growth rate (CAGR) rate of 27 percent to $32.4 billion through 2017. That's six times the rate of the IT market overall. Looking just at the advanced analytics market, we see it is forecast to grow from $7 billion in 2014 to $30 billion in 2019, according to Research and Markets. No wonder marketing teams are looking to up their game in analytics.
Let's start by defining terms. Advanced analytics generates insights into data that go beyond simple visualizations in dashboards and reports. These dashboard tools often lack in-depth analysis, providing only a "temperature" reading of what's already occurred. In contrast, advanced analytics establishes a foundation for 1:1 marketing, supports highly targeted customer acquisition and retention efforts, not to mention enabling marketers to optimize specific programs based on predictive models. Advanced analytics goes beyond dashboards to interactive reports, leveraging dynamic statistical models. Marketing-specific solutions deliver capabilities like attribution and correlation discovery to explore hidden relationships among seemingly disparate channels, and generate more information about why, when, and where consumers interact with brands across all marketing channels and platforms. The "what-if" analysis enables marketer to explore likely outcomes depending on which actions marketing teams take. The objective is turning data into action, and ensuring those actions are the right ones given the changing constraints.
Nonetheless, marketers struggle to understand the effectiveness of their campaigns, promotions, content, social media programs, and other forms of consumer awareness initiatives. They must track performance across countless combinations of online and offline channels, mobile devices, and social networks - and find it's still far from easy. Here's why:
It's my view that the use of advanced analytics in marketing has been fundamentally stifled by challenges related to data silos. To adopt advanced forms of analytics now in such demand, the marketing team needs to take a first step: get all the marketing data scattered across data silos into one location. Simply put, you first need your data unified to run meaningful analyses across the entire multichannel landscape. This is fundamental. Once the multichannel data is unified, transformed, and cleansed, now you are ready to apply the advanced analytics required to extract real value from these dynamic data sets - to support significant business decisions. And that's when the real fun starts!
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Pelin Thorogood, a new media marketing and analytics expert, is CEO and a board director of Anametrix, the first cloud-based, real-time marketing analytics platform. Her career as a high-tech innovator includes leading the go-to-market strategy as CMO of WebSideStory (acquired by Omniture/Adobe), extending Peregrine Systems' enterprise software business (acquired by HP) into web-based applications, and in the mid-1990s launching one of the very first mobile B2B applications. She was named one of the "20 Women to Watch" in sales lead management in 2011 and 2012. Pelin holds a B.S. in Operations Research, Masters in Engineering. and MBA degrees, all from Cornell University, where she also serves as Executive-in-Residence for the Johnson Graduate School of Management. Follow Pelin on Twitter @PelinT.
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