Executives are quickly recognizing the value of data-driven marketing, and the pressure to translate results from this opportunity has increased dramatically over the past year.
According to a new report from Teradata, a majority 87 percent of marketers consider data their organization’s most underutilized asset. That’s a huge gain from 2013, when just 46 percent felt that way.
Like marketers, brand executives are feeling the same pressure to improve their data-driven efforts. The report indicates that 49 percent of respondents feel “significant pressure” to increase data’s role in their current strategy.
For innovative brands that have climbed aboard the data train, the results are satisfying. But a large gap remains.
“The ultimate goal of data-driven marketing, of course, is to improve business,” the report states. “Yet as of today, just 39 percent of organizations are capturing significant business benefits—such as improved ROI, increased customer loyalty, or more sales conversions—from acting on customer data.”
Teradata points to significant economic opportunities for brands that embrace data-driven strategies. The report indicates many brands are using data to become more efficient: 59 percent of respondents cite the ability to make faster decisions as a key benefit of this analytical approach.
Such strategy can also open doors to new revenue channels previously untapped—and, in some cases, unrecognized. A recent B2C report focused on how STIHL USA, a manufacturer of outdoor power equipment tools, uses data. Though this may not seem like an industry where data-driven insights could shed much new light, the company used data-driven analysis of its marketing and other strategies to find roughly $200 million in revenue opportunities.
Even for a multi-billion-dollar business, that’s a huge chunk of money, and it underscores how data-driven marketing can guide brands toward more efficient horizons in new annual revenue opportunities.
Achieving this level of smart marketing requires collaboration across departments, particularly regarding IT and marketing efforts within a brand. Brands must start with the data collected within their own organization, and then use external data insights to supplement case-specific feedback.
With this data-rich foundation in place, brands can start building new marketing strategies that make use of those insights. Automated processes can be established to increase production and revenue generation opportunities without further taxing resource-limited departments.
Intuition still has its place, but it’s not the only answer—or even the most efficient one. Marketers are quickly recognizing this, and they’re feeling the pressure to start leveraging data today.