Earlier this year, our Strategic Partner Teradata published the results of a global research survey relating to data-driven marketing. The 2013 Teradata Data-Driven Marketing Survey, Global included responses from more than 2,200 marketers in companies with annual revenues of more than $100 million. Given the size and depth of this survey (it consisted of 58 questions), the results merit serious consideration.
Here are a few of the significant survey findings:
- 78% of respondents said they feel pressure to become more data driven.
- Almost half (49%) of respondents believe that using data to make decisions results in better business outcomes such as increased revenues, higher profits, and lower costs, but less than 10% said they use the data they currently have access to in a systematic, strategic way.
- 45% of respondents said that data is the most underutilized asset in the marketing department.
- 42% of respondents identified lack of process as the primary obstacle to using data-driven marketing (only 22% cited lack of data as a significant obstacle).
Most marketers would agree that data has become critical for improving the performance of marketing, but it’s important to remember that data alone won’t produce effective marketing. Today, marketers are challenged to create meaningful engagement with individual customers and prospects, and to create such engagement, you need three distinct capabilities.
- Data – The first key requirement is to capture accurate and relevant data at the individual prospect/customer level. For most large enterprises, having enough data is no longer the main issue. If anything, the volume of data available in most large companies can be overwhelming. Integrating data from multiple sources, however, is still a big challenge. According to the Teradata survey, only 18% of companies have a single comprehensive view of the customer, and this is one of the top priorities for future improvement.
- Insight – The second critical requirement is the ability to extract useful insights from the available data. Marketers now recognize that data alone has little value. The Teradata survey found that within the next two years, 71% of marketers plan to implement a big data analytics solution to help them extract useful insights from the ever-increasing mountain of data available to them.
- Action – The final requirement is the ability to translate insights into action. Even if your company develops important customer insights from the available data, those insights will have little value until you act on them. When respondents to the Teradata survey identified lack of process as the #1 obstacle to implementing data-driven marketing, they were referring to the processes needed to “operationalize” the insights extracted from data.
Effective data-driven marketing obviously requires sound business processes, but it also requires the right technology tools. Insights regarding customers and prospects often have a limited shelf-life, and their value can be lost if a response is not executed quickly. To deliver effective insight-driven marketing, enterprises need a marketing execution technology platform that can convert insights into action on a near real-time basis.
Eager to find out more? Teradata will be speaking at the upcoming ADAM Sync! events