Big data and marketing automation have brought a lot of attention to marketing analytics recently. Industry data shows that companies leveraging analytics perform stronger. Firms are projecting to increase spending on analytics by 72% in the next 3 years (in Feb 2014 companies spent 7.2% of their marketing budget in analytics).
At the same time, marketing budgets have seen drastic cuts. For instance, the marketing budget of mid-size companies (100-500 M$ in annual revenues) went from 10.6% to 6.6% of firm revenues in the past 2 and half years. This is because companies have been struggling at implementing analytics right.
Good news are that CMO optimism in the US economy is at a historic high: from 15% to 54% in the last year.Although these stats were collected from a different class of business, as in comparison to entrepreneurs and start-ups, the data and mindset is what investors love. As an entrepreneur if you can prove to an investor you know your metrics and analytics that will carry some heavy weight when raising money.
Here are the 3 key recommendations to win with analytics.
- Talent before tools – If tools are attractive because they can automate and scale up operations, remember that tools are only as good as the people who run them. Focus on right talent first.
- Embrace a culture of analytics – About 33% of companies are leveraging analytics for decision-making and are able to demonstrate the value of marketing.
- Plan SMART– Based on my experience, 80% of companies lack specific objectives when it comes to marketing planning. When connecting the dots from the top to the bottom of the funnel, this translates into lack of specific objectives and clear understanding of the conversion paths that generate sales. Make sure your objectives are SMART, Specific Measurable Attainable Relevant and Time bound.
Follow these recommendations and your company will be in the right place to dominate the marketplace, gain confidence with investors and give you what you need to be successful. For specific executable marketing coaching visit www.ReportCardMarketing.com.
