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Marketing analytics are only influencing 53% of decisions
According to a Gartner report, marketing analytics influence slightly over half (53%) of marketing decisions.
Gartner polled 377 marketing analytics customers in May and June 2022 to investigate the role of marketing analytics in decision making.
“CMOs frequently feel that accomplishing marketing data integration goals would lead to more impact and higher value of marketing analytics,” said Joseph Enever, senior director analyst in the Gartner Marketing group.
“The fact is that better data alone will not boost the decision-making effect of marketing analytics. CMOs must address the fundamental issues, which include cognitive biases and the need for a data-driven culture.”
According to the report, the number of marketing choices influenced by analytics matters: Organizations that publish marketing analytics have less than a 50% effect on choices.
According to the poll, the number of marketing choices influenced by analytics matters: organisations who claim marketing analytics impact fewer than 50% of decisions are more likely to agree that they are unable to establish the value of marketing. After marketing analytics teams hit that 50% milestone, there are likely to be diminishing benefits to trying to influence more choices.
By 2023, Gartner forecasts 60% of CMOs will cut their marketing analytics department in half due to failed promised benefits.
Top Marketing Analytics Impact Roadblocks: Data Quality Issues and Cognitive Biases
Users of marketing analytics continue to identify issues with evergreen data maintenance as the primary reason analytics are not used when making choices. In this year’s poll, the difficulties of “data consistency across sources” and “data accessibility” surged to the top.
Marketing organisations frequently respond to these difficulties by integrating additional data or adopting different technology, assuming that this is a one-size-fits-all strategy to marketing data management – but they fail to see concrete results on important outcomes. While chasing a 360-degree picture of the consumer, for example, marketers see declining marginal returns on data integration.
Limitations to using marketing analytics in decision making are often caused by people and/or process issues rather than data integration obstacles particular to marketing.
Key cognitive biases, for example, lie at the basis of the marketing analytics influence plateau. One-third of respondents said decision makers cherry-pick evidence to present a tale that supports their prior choice or attitude.
Moreover, almost a quarter of respondents stated that decision makers do not evaluate the material supplied by the marketing analytics team (26%), reject their suggestions (24%), or make their final decision (24%).
Therefore, tracking analytics-based choices to offer a current state of view and places for improvement is important. Also finding examples of marketing analytics work that resulted in actionable marketing campaign or program suggestions. Marketing executives should urge their teams to search for trends in decision-making patterns and to track the sorts of decisions they impact.
Establish KPIs and measurements before initiating a new campaign or marketing plan, not after the data has begun to flow.
Senior leaders are encouraged to provide a good example. Avoid being a HiPPO (Highest Paid Person’s Opinion) by allowing data to inform or amend your judgement.
Create analytics upskilling programmes that take into consideration the marketing organisation’s diverse processes and resource restrictions.
Also, create analytics upskilling programmes that take into consideration the marketing organisation’s diverse processes and resource restrictions. Create personas that outline how various employees must utilize data in their responsibilities, and prioritize training sessions that best enable participants to develop the skills required to execute their job.