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.
Big data and the rise of data scientists holds the promise of improving the understanding shopper behavior, which can provide an improved marketing mix and enhance retail profitability.
The use of data can provide a more complete understanding of media cause and shopper effect. But, harnessing the power of data is still elusive. A TechRepublic survey indicates a growing expectation that data analytics and big data will have a major impact on businesses’ performance in the next two years.
Here are some of the highlights from this study:
A majority of companies are using data analytics. 51.7% of respondents said they use data analytics in everyday decision-making and processes. And 69.8% of global businesses will be using data analytics by the end of 2013.
Despite over 50% of respondents using analytics, just over 10% report using big data platforms.Only 4.9% have an analytics capability that sources data from a data warehouse and a big data platform.
The reasons companies aren’t using analytics: Either they aren’t in an industry with lots of data (35.5%), or they don’t see a suitable return (13.5%). The other half of respondents do see a potential return, but they’re not using analytics because it’s either not a priority right now (28.1 %),or they lack the in-house skills to make it work (23.3%).
Respondents see growing potential for data analytics and big data to have a major impact on their organizations’ performance. Big data projects and systems could likely be commonplace within a year.
Companies were asked to rate the priority of business outcomes. 62.5% rated revenue as a major priority, followed by 57.3% who rated a better understanding of customers and markets as their highest priority.
The rapid adoption of big data is causing a disruptive change for retail marketers and the industry. Most marketers do not have an extensive set of math, coding, and data set skills (many of us got into marketing to avoid these areas!). The skill set or even top management does not readily exist in many retail organizations. Read More
The top concern that keeps CMOs up at night is the data explosion.
IBM surveyed 1700 CMOs, and more than 70% felt unprepared to harness the power of big data. McKinsey indicated that CMOs question their ability to manage large data sets. The Conference Executive Board stated that, for the first time in its survey’s history, big data ranked as one of the top three issues for CMOs.
But why is big data such a big deal? What is the promise of big data? And why does it keep CMOs up at night?
Most organizations, however, seem to lack the skills to effectively process and use this information for decision making and suffer from “analysis paralysis.” Read More
On the Ball – focuses on profitable retail observations and insights observed from my personal experience on both the agency as well as client side of the business.
It has been said that virtually all selling and marketing is ‘retail’ – when measurable results are the imperative.
My tenure as CMO as well as agency principal centered around measurable results at the cash register…. the ultimate measure of any CMO’s job life expectancy.