Marketing Analytics: Still Chronically Underused within Enterprise Marketing
Data and analytics phrases are hot buzzwords in conferences, executive presentations, and pitch decks: “big data,” “data-driven decision making,” “predictive analytics,” “data mining,” etc. We’ve all heard big claims about how we as savvy marketers can make near perfect recommendations and updates with the right data. But I don’t see this happening nearly as much as I hear it being talked about. In fact, according to a large CMO Survey, “only 30% of B2B marketers rely on analytics to make data-driven marketing decisions.”¹
Years ago, I thought that the problem was tools had moved faster than marketing processes and positions could keep-up with. Marketing teams started gathering more and more data without knowing exactly what to do with it. But we’ve had plenty of time to catch up, and yet… progress within analytics application has gone slowly, and data is still chronically underused. Why is that? Is the entire idea that data analytics is a gold-mine faulty? Or are there just big challenges out there that many marketing teams can’t overcome?
Data analytics IS incredibly valuable, but it’s not the end all be all in all scenarios. There’s still a lot of intuition, best practices, and business oversight that have parts to play. Even understanding that analytics will never be the only consideration in the marketing decision-making process, big challenges are what usually keeps marketers from using analytics data more.
Let’s take a look at the three biggest roadblocks that I’ve consistently seen throughout my career (and it’s usually a combination of them).
Missing Data
Missing data is a very common problem, which can impact the validity and reliability of the data and any decisions derived from that data. Missing data can be caused by a variety of factors from simple data collection errors and problems in setup to inability to integrate harder to track data.
One very specific issue that I’ll call attention:
Poor/Missing CRM Integration: Access top funnel digital traffic but little access to CRM and sales data. This means engagement and conversion data might have substantial quality issues. Was that conversion low quality or high quality? Did it lead to an opportunity? A sale? Refining campaigns so they increase conversions only really works for a business if those conversions are the right conversions that ultimately lead to sales.
Common causes:
Poor setup
Lack of attribution
Improper tracking
Only top-level data
Users declining consent for data tracking
Siloed Data
Another common problem that can hit enterprises harder than mid-size or small businesses is siloed data. The good news is that an enterprise might not be missing big chunks of data, but that data might live separately in multiple places. If an organization has poor integration across all of their digital experiences and/or strong organizational siloes, it’s really easy to have data living in multiple separate containers with little to no integration of that data. This can cause the same problem that missing data causes—you don’t have the full picture of performance and what picture you have might be misleading.
Common causes:
Different data owners
No single data overseer
Multiple digital tools without integrations
Poor integrations
Minimal Data Analysis
As harmful as these two previous problems can be, they usually aren’t the biggest roadblock to data-driven decision making. The single biggest problem I’ve seen over and over again—even in sophisticated enterprise marketing departments—is having the data but simply not analyzing and using it. The top two reasons marketers usually give for why analytics isn’t used more are 1) lack of process and tools and 2) lack of people with that skill.¹
Common causes:
No easy-to-understand visualization
No strategic preparation of what needs to be understood
No next steps for how to iterate using the data
Under resourced and no data analysts on the team
Solutions to Overcome Analytics Challenges
This isn’t an easy fix. My biggest recommendation is make analytics and data analysis a priority not just within the marketing department but within the entire organizational structure. Start by assessing and documenting the current state of your data. Define the outcomes you need to achieve to meet your marketing and business goals. Paint a picture of the short- and long-term ROI.
And bring in experts. Analytics and data analysis are niche skills that most junior marketers and senior marketers do not have deep expertise in. It would take an enormous amount of time for most generalists to clean up data setup, integrate data channels, set up a data analysis strategy, create data visualization, and then apply data analysis. Specialists can cut this time down dramatically and provide a more sophisticated and effective foundation.
If you’re struggling with marketing analytics or data challenges, reach out. We can review your specific needs or do an audit if you’re unsure where to start. We can help you make your data actionable and boost your digital marketing results.