Big Data: Mad Men Meet Math Men for Profitable Retail
How to create a Marketing Analytics Framework that provide key insights to CMOs to make successful marketing decisions.
In a recent Forbes interview, Tim Suther, the Chief Marketing and Strategy Officer for Acxiom, said,
“Big data is challenging everything we know about marketing. The “big idea,” as romanticized in television’s Mad Men, is no longer enough. A new marketing discipline, rooted in science and the big data goldmine, is vital. Mad Men meet Math Men.“
Retail marketing has become more data-driven than any other aspect of retailing. But there is so much data available and so many options on what to collect and how to analyze it that retail marketers don’t have a clue where to start.
A study by Gartner detailed best practices used by organizations to build marketing analytics systems that specifically support the decision-making of CMOs.
CMOs need a framework that helps them manage all of this information which may include:
- Sales metrics
- Competitive intelligence
- Creative and media planning
- Customer life cycle
- CRM; event management
- Lead generation
- Promotional effectiveness
- Predictive Modeling
How does the CMO get a grasp on all of the complex information at their disposal?
Best practices for developing useful marketing analytics typically start by Organizing around an Analytical Framework. Each and every decision or process for which the CMO has responsibility must be part of the overall framework.
The key steps required:
1. Assemble a Marketing Insight Team
The team is charged with planning and developing the marketing analysis needed to support the activities and decisions of the CMO.
- This will require multiple internal and external resources.
- May include trend analysis, pricing & profitability analysis, forecasting, data mining, media buying, and lifetime value analysis.
- Important to know the appropriate skill and needed expertise levels.
2. Establish a Master Data Management Strategy
This is critical for managing data that comes from multiple internal and external sources.
- CMOs need confidence in the source and quality of the data they receive and use.
- Create a CMO Dashboard. The goal is for CMOs to be able to quickly utilize data to gauge effectiveness, as well as obtain relevant and timely insights.
The most successful organizations will plan and execute their analytics to fit the needs of the CMO.
Click on the following link to register for access to the full report, “A Marketing Analytics Framework for CMOs”