Brands are cracking down on their data measurement capabilities and developing a better understanding of the fragmented customer journey, but are they really adding value to the customer experience? Is it even realistic for marketers to connect with the right person, at the right place at the right time?
Industry trends haven’t changed in years, the conversation is still the same. It’s about data measurement and personalization for increased engagement and ROI. However, a recent report on digital marketing maturity from Boston Consulting Group (BCG), commissioned by Google, showed that “just 2% of brands are best-in-class at data-driven marketing.” This begs the question, are brands really doing it right? Isn’t it time marketers matured their strategies?
The report showed that “best-in-class brands drive up to 20% more revenue and 30% more cost savings” so there must be a collective need to change, to connect the dots and unlock crucial insights to put digital marketing maturity at the top of priority list.
Roadblocks to maturity
The biggest hurdle in this transition is the customer journey – an ever changing and ever more complex nut to crack. Customers engage with a multitude of online and offline touchpoints, making accurate attribution more challenging.
The problem is further compounded by data silos within organizations, where internal teams hold customer data in different systems which are not connected to each other. Add to that the fact that these teams communicate with customers across all channels and the picture becomes more fragmented. Without a holistic, unified approach to customer data, marketers face the near impossible task of understanding their customers true purchase behaviour and buying preferences. Maturity can begin to emerge when organizations combine and consolidate the customer data they house,paving the pay for actionable insights.
Connected Data & Actionable Measurements
The BCG report identified connected data and actionable measurement as two technical enablers of digital marketing maturity. Building connected infrastructure is the antidote to siloed data. The report showed that 80% of companies had poor inter-system connectivity.
Crucial in the measurement discussion is an organization’s ability to glean insights upon which marketing decisions can be based, resulting directly in increased performance and ROI. It is possible to implement simple customer data infrastructure that enables this, known as a Customer Data Platform (CDP). By collating all online and offline customer data in a comparable, like-for-like format, it provides the foundational building blocks for marketers to unlock the customer journey and mature their marketing strategies.
Furthermore, a CDP allows businesses to perform objective measurement of campaigns that can be synchronized with KPIs. This leads to decisive action that drives enhanced marketing effectiveness and improved performance throughout the entire business.
Automation & Integrated Technology
BCG identified automation as the other technical enabler. With the growth in customer data, companies must automate processes accordingly to avoid runaway costs and, according to BCG, currently the industry isn’t getting it right – the report found that only 32% of businesses were automating their processes.
Automation comes through data science and machine learning models, allowing precise measurement of channel performance. Multi-Touch Attribution (MTA), for example, empowers businesses to perform fully automated and laser sharp attribution measurement across all touchpoints in a customer journey. MTA can be an affordable and agile enabler and, once integrated, marketing teams can be more efficient with spend by acting on the insights provided.
The report also highlighted three internal organizational prerequisites for achieving high-level marketing maturity; with organizational alignment and structure as key components of this. Businesses leading the way reported a 2.5x improvement in revenue versus their counterparts.
Strategic partnerships with third-party organizations help alleviate some of these internal pain points and barriers to entry. Onboarding external experts who are flexible and allow a business to retain autonomy and full ownership of their data is possible.
Fospha’s approach does just this. We recommend starting small with tools that can deliver fast, effective results, directed at the most pressing issues and then building from there. This allows for robust scalability while also proving to CFOs the effectiveness of a marketing team’s efforts.
BCG cited specialist skills as another vital enabler of digital maturity; the report found that high-performance companies employed the brightest minds where required. Crucially, though, it found that these experts had to be fully inducted with other team members, to ensure success.
At Fospha, we are proud to have data science experts at the forefront of the marketing attribution and data science measurement industry. By putting our experts in close contact with in-house teams, companies can leverage these skills alongside their existing creative and strategic talents.