According to the Columbia Business School and the New York American Marketing Association’s Marketing Measurement in Transition Study, marketers' desire to be data-driven is not yet matched by a consistent effort to collect the data necessary to make these real-time decisions. 29% report that their marketing departments have "too little or no customer/consumer data."
When data is collected by marketers, says the report, it is often not appropriate to real-time decision making. 39% of marketers say that their data is collected "too infrequently or not real-time enough." Furthermore, marketers today are still much less likely to collect new forms of digital data like customer mobile device data (19% collect it), and social media data (35%), than they are to collect traditional customer survey data on demographics (74%) and usage (60%).
The study results focused on three main findings:
The study found that marketers are struggling to measure the impact of the newest digital tools, despite the widespread adoption of these applications. 51% of marketers said they use mobile ads (in-app, or SMS); 85% use social network accounts (brand accounts on Facebook, Twitter, Google+, and Foursquare). Yet these tools are among the least likely to be measured for ROI despite their profusion of data.
The study also revealed that there is confusion about the meaning and significance of ROI among marketers.
21% are using financial metrics for "little" or "none" of their marketing budget and 7% are spending most or all of their marketing budget with "no metrics" at all. However, marketers are under pressure. 70% say that their marketing efforts are under greater scrutiny than in the past.
After its analysis of the dynamic and challenging environment for marketing today, the report recommends that Chief Marketing Officers should focus on five key leadership imperatives:
The study was piloted by Columbia Business School Marketing Professor Don Sexton, board member of the NYAMA, with David Rogers, Executive Director, BRITE. 253 corporate marketing decision makers, director-level and above, were surveyed, 90% representing a global annual revenue of over $50 million, with 45% over $1 billion.
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