Even though over 90% of Chief Marketing Officers do believe analytic tools will help them successfully reach their marketing goals, few are using them.
It is estimated that less than 20% of companies utilize analytic tools available to them when making marketing or even business decisions.
As a firm well rooted with digital marketing concepts and strategies and a daily use of analytics, we get why so many executives are reluctant in not only using analytics but even starting the conversation. Everything we do in today’s marketing world is built around the ability to track; tracking designed to show you conversion rates, tracking designed to identify and follow potential clients, tracking designed to answer demographic questions, tracking for ROI, and so much more.
Here is where the problems start: you can easily put yourself into a paralysis by analysis. Every time you look at a number it changes an outcome on some other portion of the strategy. Also, if you are an executive and you see your analytics you all of a sudden start second guessing your thought process and your experience. There are not a lot of executives that feel comfortable with questioning their own thought process.
Here is why it is important to listen to someone who reads, analyzes, and understands what the analytics are saying. You now have someone who can tell you what way your industry is trending, who your target demographic really is, and most importantly, what your clients are saying.
1. The right data answers key marketing questions.
The way we analyze data is to give you the amount of analytics you feel comfortable with. We want to arm you with the right knowledge on just how effective your website is. Where are your visitors coming from, how long are they staying, what are they looking at, what is the path of visitors on your site? What is engaging them and what is driving them away? This information allows you to make the decisions needed to develop the most effective site possible, addressing elements of your campaign such as:
Where should I be spending my marketing budget? On development of site assets?
How do I drive more traffic?
Who is my actionable demographic?
Why am I getting the results I am?
2. Your sales pitch is driven from analytics.
The right analytics improves your knowledge of the process.
Analytics not only help you close the sale, they help you open the door for up-selling and cross selling products or services but also keeping the sell. When you have analytics on your side you are no longer speaking from a position of opinion or hypotheticals, you are speaking from a position of fact. When you speak from a position of fact you eliminate objections or concerns. You also position yourself as the professional on the topic, which opens the door for collaboration and conversations from a position of trust.
3. Client retention.
As you know, it is more expensive to bring on new customers then it is to retain the ones you have. Studies show that it is up to 7x more expensive to acquire a new customer. A recent CMO.com article explained how American Express used predictive analytics to help identify clients who were most likely move their business. With this information in hand, AMEX was able to increase the client retention results by 740%. That is a good use of analytics in our opinion.
4. Help keep your business competitive.
Our advice to clients is to stay focused on what you do and do well, do not try to be something you aren’t because you are trying to compete with your competitors. However, it is important to know and understand the direction your competitors are moving in order to stay competitive. It is also important to know industry spending trends. Your strategy may be adversely affected if you are not competitive with your marketing spend. According to surveys and multiple articles, CMO’s are anticipating an increase in their current marketing budget and an investment increase of 5.8% to 10.7% in analytics over the next few years.
5. Analytics lead to bottom line growth.
A survey from BAIN.com shows that a study of four hundred companies who used a form of analytics are twice as likely to exceed financial goals. Also, a SASCOM Magazine article revealed that analytics help you and your team make faster and more informed decisions. With the right information placed in your hands, at the right time, you are far more likely to make a decision based on knowledge. The alternative is to take more time to gather the information from multiple sources, then analyze it, and finally, make a decision. Business today is about speed and agility, the right analytics gives you that.
Market Smarter Not Harder.
In business today, we are afforded the analytics to decrease overspend and keep pricing and marketing ROI at the center of all marketing decisions. The key is to believe that the analytics are speaking to you and that the analytics are affording you the knowledge to take advantage of marketing opportunities or switch gears and avoid marketing pitfalls. Analytics are a friend to marketers, you just have to let them work for you and do not fear what they are telling you.