It is clear, at this point in time, that enterprises are deploying analytics everywhere. What’s not so clear is how they are being used and, more importantly, what is happening the data they produce? Demand Metric (DM) carried out a study to answer these questions and found that despite the prevalence of analytics in enterprises, there are still cultural factors that preclude their use.
Demand Metrics Survey
The conclusions, which have been drawn from answers by 622 members of the Demand Metric community show that while marketing analytics are being used extensively, there are business culture barriers that prevent enterprises getting more out their use.
The research also points to a gap in the marketing analytics market that could be filled by a vendor that is prepared to not only build marketing analytics deployments, but also demonstrate how they can best be used -- marketing analytics services, you might say.
The key challenge for these vendors, DM says, is demonstrating the value and relevance of such deployments by showing their contribution to the organizations they are deployed in.
Marketing Analytics Problems
There are a number of interesting conclusions in the survey, a full copy of which can be found here and which consisted of 8 questions put to the DM community online.
The first question was, needless to say, a question as to whether the organization the respondent represented actually has marketing analytics installed.
Over 60% are still trying to find their way, the responses show. Of that figure, 29% have done nothing at all about marketing analytics, while 32% are still experimenting to find the best solution for them. The later also includes those that may have analytics, but the analytics are not feeding into business decision making. The rest said they are tracking meaningful analytics.
Unsurprisingly North American organizations are ahead of the rest of the world when it comes to these kind of deployments, with large companies making more progress than small companies, 33% of small companies avoid marketing analytics, or are searching for the best way to start.
Marketing Analytics Importance, Challenges
The figures are even more striking in light of the fact that 92% of responses -- which must include at least some who are avoiding analytics -- acknowledge that marketing analytics are important for managing marketing processes, or improving marketing credibility.
The survey also uncovered a number of challenges that organizations said they faced when they started considering marketing analytics. Those are a mixture of challenges that we have seen elsewhere with analytics generally, and in particular big data analytics. They consist principally of problems with skills shortages, resources or employee buy-in.
Asked to identify what the biggest challenges are, the responses were consistent regardless of what the job title was, except in the case of one response: the difficulty of identifying and then tracking a meaningful set of analytics.
Only 12% of marketing respondents noted this as a challenge while 24% of those that fell into the category CEO/SVP/President/Owners felt it to be a problem.
Marketing analytics challenges
For large companies the biggest challenge is having the systems and infrastructure to measure and track analytics (33%), while for small companies having the time or staff to get it done ranks third (27%).
Marketing Analytics Data
The use of data is also a problem with nearly a quarter of organizations (24%) that responded saying that no one is using the information that is being collected from marketing analytics.
Of the rest, 38% say that the information stays within the marketing organization where it is used to improve marketing results. When that 38% is broken down the analysis shows:
- Small companies’ marketing teams are least likely to review the data (30%)
- Medium size companies’ marketing teams are most likely to use the data (49%)
- CEO/SVP/President/Owners have a much higher perception of marketing analytics data transparency and sharing (23%) .
Marketing analytics data use
But there is other information that is quite surprising, not least of which is that 72% of organizations are spending less than 5% of their marketing budget on analytics. Where they do spend more, the companies claim they are getting more back from it.
Of organizations that are spending more than 10% of their marketing budgets on analytics, 55% reported noticeable or substantial impact from their analytics campaigns, while of those that spent between 6% and 10%, 38% say the impact is substantial.
There is a lot more here that covers many different aspects of deployments, with much of it reflecting difficulties around analytics in other technology areas. There is little doubt that the situation will evolve over the coming months and worth tracking.