Overflowing data systems, costly data analytics and marketing insights still based on gut instinct and historical data. Many marketing managers are struggling to benefit from even the most basic data analytics. But, according to marketing consultant Eline Schoonen and data scientist Gerwin Hendriks, there’s hope at the end of the data tunnel: if data analytics is used with a clear goal in mind, it can add huge value by supporting people in making the best possible decision in their daily operations.
Increasing your analytics capabilities could feel like the answer to gain that competitive edge you’re looking for. But, growing capabilities also means a growing complexity of your analytics. In fact, research shows that companies are struggling to benefit from even basic analytics. A stunning 70% of high tech companies don’t know what data analytics will or can bring them. The thing is, that in most organisations nobody really understands what to do with the vast amount of data that is available.
What we see, is that companies just plunge in and ‘do’ data analytics because the data is there. But, data analytics that is carried out simply because the data is at hand, provides little or no value. Optimization is what matters. It enables you to have the right information at the right time in order to make the right decision.
Where does your organisation find itself when it comes to data analytics maturity? Here are four questions you should be asking in order to understand your organisation’s analytics capabilities.
What came first: the chicken or the egg? Data analytics requires adequate tools AND the skills to work with and understand the limitations and potentials of the tools. The snag is that you need the one before the other can do anything (and vice versa). Small increments of parallel growth in awareness and knowledge are the way to go here.
In fact, perfect data doesn’t exist. Not a shocker is it? But an interesting discussion that should be going on, is not so much about data quality (yes, of course you need clean data, but you shouldn’t be looking for 100% quality). It should be about if what you’re getting can be easily translated and applied in your daily operations. And is the recipient willing to use it? Not only when and if it fits their agenda, but always for the sake of the business.
Yes, it will, if you focus on which data is required to enable you to do so. A McKinsey survey of more than 700 organizations worldwide found that analytics spend to gain competitive intelligence on future market conditions, to target customers more successfully, and to optimize operations and supply chains generated operating profit increases in the 6 percent range.Data insights give companies new opportunities. Not only in acquiring new business, but also in retaining existing business. By collecting, analysing and responding to data regarding the customer journey and experience, you won’t need to sell your product (or service). The positive customer experience will do it for you!
Many marketeers struggle to provide actual proof of their contribution in a lead that they handed over to sales and which is eventually closed successfully by sales. Sales claims the win. But to what extent is such a success due to the marketing efforts? This problem could be solved if marketing investments could be made transparent. Inherently difficult to measure, it’s definitely not impossible. For instance by defining the right KPIs, structuring and cleaning your data set, and by measuring the right metrics in the right tooling, you’re bound to (im)prove!
Once you’ve answered these four questions, you’ll also be able to assess whether you are getting the best out of your data. Is it being used in such a way as to help people make the best possible decision in their daily operations? To be certain whether the essentials are in place to be able to optimize your data analytics and to know what is missing, a Quick Scan is the easy way to find out. Such a scan shows you instantly what is needed to take your organisation’s data analytics capabilities a step further and translate data into useful marketing insights.
If you don’t have the people and skills to assess your data analytics capabilities, think of hiring an external consultant that has both skills and knowledge, as well as access to the tools you need to take the next step. It’s the best way to close the gap in a lean way. We’ve helped numerous B2B tech companies turn their scattered data into valuable insights and in this way created new and valuable business opportunities for them. You want to know more? Request our case study about Data Driven Marketing.
If you’re looking to make your data work for you and create true added value or if you need support with a Data Quick Scan, get in touch with us! You can call us on +31 850604085 or drop us a line at info@tech-to-market.