Commentary

100 Proof Data: How Brands Distill Customer Information To Make Decisions

Email marketing ranks No. 2 among uses for data-driven marketing, surpassed only be personalization, according to Data Driven Marketing: A Research Guide for Marketers, a study by Ascend2. And it may be that the term ‘personalization’ covers email as well as ad delivery. 

The most popular uses for data-driven marketing are:

  • Personalization — 42%
  • Email marketing — 38%
  • Content marketing strategy — 36%
  • Product/services development — 36%
  • Paid advertising — 30% 
  • Campaign planning — 30%
  • Customer journey mapping — 22% 
  • Attribution — 11%

First, a definition: Data-driven marketing is the science of making decisions backed by data.  

But it’s not easy. The greatest challenges are:

  • Collecting quality data — 50%
  • Identifying/utilizing appropriate solutions — 33% 
  • Interpreting and applying data — 31%
  • Allocating adequate resources — 30% 
  • Utilizing real-time data — 25% 
  • Normalizing data — 18% 
  • Creating infrastructure — 17%
  • Obtaining organizational buy-in — 16% 
  • Centralizing data/removing silos—10%

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Moreover, the discipline itself has been affected by several factors in the past year: 

  • Changing consumer behaviors — 48% 
  • Technology innovation — 36%
  • Changing quality of data — 34%
  • Changing data and privacy regulations — 27%
  • Dedicated budget modifications — 25%
  • Historical data relevancy — 25% 
  • Changing number of touchpoints — 20%
  • AI (artificial intelligence availability)—17%

Despite all that, 62% of marketers say they’re somewhat successful at data-driven marketing, and 29% claim they’re very good. Only 9% are unsuccessful. 

What’s more, 79% are satisfied with their team’s ability to make effective decisions based on customer data, and 25% very much so. 

And 65% say their data-driven marketing budgets are increasing moderately, while 17% expect significant jumps. But 17% are reducing their spend, with 3% reducing spend significantly. 

What do they plan to spend it on? Their top improvement priorities for the year ahead include: 

  • Improving personalization — 45% 
  • Improving data quality — 45%
  • Utilizing more available data — 38%
  • Mapping customer journey — 27% 
  • Identifying touchpoints — 22%
  • Improving segmentation — 23%
  • Improving attribution — 21% 
  • Consolidating technology stack — 13%
  • Removing data siloes — 13% 

How often do brands make use of this asset when making decisions? Of those polled, 24% always do so, and 39% most of the time. Another 28% say some of the time, 8% very little and 3% never. 

Ascend2 and its Research Partners surveyed 485 marketers between from September 20-28, 2021. Of those, 25% were B2B, 52% were B2C, and 23% were B2B and B2C equally. In addition, 48% described themselves as owners/partners/C-level, 25% vice president/director/manager and 27% non-management professionals. 

 

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