Why do marketing metrics matter? Due to the ever-changing macro environment, the roles and responsibilities of marketing departments have also evolved.
In CIO magazine, Gartner predicted that by 2017, Chief Marketing Officers (CMOs) are anticipated to spend more on IT projects than the Chief Information Officer (CIO). There are a number of reasons for this. Firstly, CMOs place their focus on measurable business outcomes such as return on investment (ROI) and as a result, marketers are not only expected to be innovative, but also to leverage analytics to refine marketing efforts. Secondly, more and more organisations are now seeing marketing as a revenue centre rather than a cost centre.
In simple terms, it’s all about the ability to study and leverage information about your target market, to deliver truly personalised content and tracking your prospects through their buying journey, until they’re ready to buy.
The more you know about your prospects’ buying behaviour, the better you can nurture your leads to take them through to conversion.
Your insights into your target markets combined with the technologies and tools now available, marketing departments can track almost everything: emails, website landing pages, web form captures, social media activities, call-to-actions, click-through rates, blogs, lead scoring, surveys and more.
All this data highlights the importance of usable marketing data and analytics.
Marketing analytics is a discipline and one that is becoming increasingly relied upon to inform the best possible business decisions. It’s a set of processes and technologies that allow marketers to evaluate the success of their marketing efforts by analysing key business metrics such as the effectiveness of campaigns, the return on investment (ROI) and the overall effects on the business as a whole.
Marketing Sherpa recently published some research they conducted into marketing analytics challenges, asking marketers about the types of challenges they had faced in 2012. The results from the survey showed the top three challenges in order of importance were:
- Acting on data to improve marketing effectiveness
- Combining data from multiple sources to draw correlations and make predictions
- Funding new analytics tools and solutions
These findings highlight why marketing departments need to overcome functional silos. It is essential that your marketing department has a single view of its performance to see exactly what’s working, and what’s not, and move away from the siloing of data in multiple or disconnected systems. This is the main reason why companies end up making business decisions based on gut feel instead of facts.
Other factors highlighting the need for accurate and integrated analytics is the number of marketing channels available to us today, and the need to control the marketing budget and spend. The question you probably ask yourself on a regular basis is which marketing channel had the highest ROI and conversion rate? The answer to this question will give you the intelligence to select the best channel(s) to re-invest in, giving you the best return on your marketing dollars.
Having access to key customer data, provides you with the intelligence to predict what your customers desire, to provide relevant and personalised content, to the right audience, at the right time. With actionable marketing analytics, you can identify, attract, interact with, and retain your most valuable customers, enabling marketing success.
To achieve this success with marketing analytics, you need to collect the right data, manage/analyse it, and transform your knowledge into actionable insights. Because unless you do something with the knowledge you have, you’re not getting any value or gaining benefit.
You can read more about Professional Advantage and marketing analytics here.
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