Every organization seems to be prioritizing their need for data. Small or large businesses, finance, accounting, sales, R&D and marketing - they're all seeking data. But, are they willing to pay for it. We could argue yes when IDC predicted Big Data would drive 16.1B in revenue for severs, storage, software and services, in 2014. But that's just the infrastructure. What about the analytics to understand the data?
Let's consider the use of data as it relates to marketing. Of course, it could be used for R&D, manufacturing, sales and other aspects of business. However, there is an interesting shift in marketing, with CMOs increasingly investing in technology to better under understand their customers and to manage their marketing programs.
Marketing executives all prioritize their need for data analytics to drive smarter campaigns and improve personalization. Yet, when it comes to prioritizing budget, e-Marketer says analytics falls behind digital commerce and customer experience. However, according to the CMO Survey, this is about to change. While marketing analytics currently accounts for 6.4% of the overall marketing budget, this is expected to increase to 11.75 over the next three years.
It's not unusual for the budget to lag behind the defined need. After all, why spend the money if it's not aligned with your business goals. The interesting thing is that the data analytics could drive more effective digital commerce and/or customer experience investments. The global marketing analytics market is expected to grow to $2.1B by 2019 according to marketsandmarkets. The big question is if that investment is worth it. It comes down to more than analytics, as there must be a human element that capitalizes upon the finding. But, the reason analytics is hot, is the promise that data analytics can improve marketing ROI.
Here are just a few examples:
- - understanding customer use and engagement of different mediums allows marketing to optimize use of channels such as email marketing, social media, webinars
- - identifying customer needs allows marketer to develop relevant content at every stage of the buying cycle
- - uncovering audience personas and motivations allows marketers to align messaging, agenda and/or sponsorships at business conferences
- - align human effort more effectively