Big data and analytics enable businesses to predict consumer behavior, improve decision-making across the board, and determine the ROI of their marketing efforts. By addressing these aspects adequately, companies can protect their market share and expand into new territories.
Spending on data analytics continues to rise with businesses and marketing leaders striving to increase value for consumers and measure the results of their advertising efforts — and this trend is not predicted to slow down any time soon.
With data volumes exploding, and analytics capabilities increasing with each passing day, many marketers are still struggling with the crucial aspects of data. They struggle to find the right steps in turning data results into actionable marketing strategies.
There is a proliferation of marketing channels and strategies, making it challenging for companies to choose a channel or strategy that would lead to a sale or any other desired outcome. This is where data analytics comes into play – with attribution models that use data to stitch together customer journeys, establish all the channels a customer accessed on their way to make a purchase, and then leverage data science to establish the influence of the channels on the end outcome. Therefore, attribution helps businesses develop the true ROI of any marketing investment by taking into account direct outcomes and assisted ones.
The other important aspect of driving higher ROI is refined customer targeting that drives higher revenue or better quality customers. Today, several data providers provide analytics and segments that are built on multiple attributes of underlying customer behavior; these segments are leveraged by businesses to drive precise & targeted marketing campaigns that deliver higher ROI. Additionally, digital channels and advertising can provide significant first-party data that can be powerful drivers of ROI.
Rigorous data analytics is a key aspect in maximizing the lifetime value of a customer. It allows businesses to see the full picture of when all the data sources are assembled together.
Even though investment in data analytics has been on the rise – CMOs believe there is still room to grow in terms of achieving maximum value from these investments. The biggest roadblock here is the siloed approach undertaken by traditional brands. Various important pieces of data may be owned by different business units that don’t necessarily have shared data infrastructure.
While customer preferences are rapidly moving towards services and products that are tailored to their needs, personalization in marketing still needs to play catch up. A personalized experience is possible when businesses leverage data to use factors such as past buying behavior, engagement with product or brand information, previous interactions with ads, likes & dislikes, and so on in the web and mobile experience they offer to a customer.