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Six Tips for Creating an Analytics-Driven Marketing Culture

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Key Takeaways from this article:

  • Times are changing and Marketing has to adapt: If you want to deliver value with tangible results, you need to build an analytical culture.
  • Applying analytics enables Marketing to combine fact-based decision-making with creativity.
  • Analytics enables innovation and efficiency by rewarding curiosity, building confidence, and ensuring accountability.

Like it or not, marketers have traditionally been viewed as creative types who rely on catchy copy, clever promos, and gut instinct to reach customers and prospects. Certainly they have not been seen as strategic business advisers. That's because measurement has been so haphazard that Marketing struggled—and typically failed—to demonstrate value.

But times are changing and marketing has had to adapt. The bottom line is that if a marketing organization is to deliver value and show tangible results, it must build an analytical culture.

Why is that important? Well, if you are like most marketing organizations, you already pack a strong dose of creativity. Applying analytics enables you to combine fact-based decision-making with creativity.

Analytics doesn't replace innovation. Nor does it supplant people or programs. Rather, analytics makes for less guesswork and more strategy. By rewarding curiosity, building confidence, and ensuring accountability, analytics enables innovation and makes a marketing program more creative and powerful.

If you're not quite there yet, here are six tips for building your own analytics-driven marketing organization.

1. Treat data as a portfolio

Your data is like your 401(k): You need to manage it so it delivers the results you want. It needs to be accurate; otherwise, your analysis and ultimately your decisions could be flawed. Accordingly, you'll need to rebalance it every now and then: look for sources you don't need anymore or data that isn't providing value... and get rid of them; reinvest your resources where you're getting returns.

Recently, in our marketing organization, we focused an initiative on data source performance, and we were able to eliminate the poorest-performing investments, which translated to cost savings and increased effectiveness.

2. Recognize the many faces of analytics

Marketing organizations have already evolved. They have readily adopted metrics, which demonstrate value, pointing to areas of progress and areas that need improvement. They are a critical component of the analysis you conduct, and so you need a process for continual evaluation and adjustment of your metrics.

Analytics in the marketing culture, however, is expressed in many other ways than just metrics. Some of the most powerful uses of analytics involve marketing optimization techniques that can dramatically decrease opt-out rates and increase conversion rates.

Optimization and modeling are pivotal for campaign design, list segmentation, and ultimately campaign execution.

Scoring and Web analysis anchor inbound nurturing campaigns, allowing us to better engage website visitors who arrive via search marketing and other sources.

If marketing can see the digital dialogue, the opportunities are endless. The ability to analyze visitors' behaviors, assign scores accordingly, predict which offers will be most attractive, and deliver the right message at the right time... translates into high conversion rates and happy customers.

3. Hire with analytics in mind

Hire marketers who have a passion for data and analytics and understand their value in decision-making.

Doing so is not as hard as it was 10 years ago. Anyone used to measuring digital and social media efforts or experimenting with A/B testing of Web pages or one-to-one marketing is primed to use more advanced analytics to measure the overall value of a program.

Hiring with analytics in mind is not about killing creativity or innovation. You're just seeking naturally curious employees with up-to-date skills.

4. Ask, 'Do you have data to support that?'

Start every project or request with that question. When considering a specific marketing channel or approach, ask for data that suggests it will work. At the very least, ask how you will know if it worked: What will you measure?

Taking this approach encourages marketers to think about how they create value for the company at a time when marketing channels are continually evolving and resources are stretched.

When you have hard decisions to make, data and analysis allow you to base those decisions on facts and create the right balance in your marketing efforts.

What's more, analytics will help you monetize your marketing investments. Say, for example, that you have traditionally attended a large number of tradeshows and conferences—which are costly and resource intensive. Now you have the opportunity to reach even larger audiences through digital channels. But how do you create the right balance?

Analytics will provide you with insight about the value of each marketing activity, the audience you reach with it, its historical and potential returns, and how to use multiple channels for optimum outcomes.

Linking the marketing activity to the expected value will provide you with the ability to make fact-based investment decisions.

5. Test, measure, and adjust

Give your marketers the freedom to test and learn so they can make intelligent decisions that will drive change. Optimization has a direct impact on results, and it will indirectly increase the confidence level of your marketers.

Since we began applying marketing optimization techniques, our conversion rates have tripled on outbound marketing campaigns while associated communication costs are dropping. Our list size has shrunk 14%, opt-outs have dropped 20%, and click-through rates have jumped 25%.

Together, all of that adds up to higher-quality leads, lower costs, and an improved customer/prospect experience.

With millions of visitors on our website, analytics is critical to determining how we make the best use of a person's time on site. With scoring and nurturing efforts, we have experienced conversion rates at 20%–30%. Add the ability to integrate online chat capabilities, and we've seen even higher conversions; and, more important, we have enhanced the overall experience in real time.

None of that could have happened if our marketers weren't comfortable testing, measuring, changing, and justifying marketing activities.

Let analytics decide the best approach.

6. Cement partnerships

Marketing leaders should focus on forging especially strong partnerships with Sales, IT, and Finance. Those relationships must be established on the basis of clear alignment, mutual respect, and trust, and they must be maintained via collaboration, joint objectives, and effective communication.

In short, you need to shift from thinking of other departments as "internal customers" to thinking of them as your partners.

Your relationship with Sales will benefit from your analytical approach. Analytics allows marketers to show how our activities deliver strong leads that convert into sales and turn pipelines into revenue. Providing sales with such intelligence builds Marketing's credibility and inspires confidence and trust.

IT has undergone its own evolution; and, like marketing, it has had to focus on delivering value to the organization. Working together, IT and Marketing have a lot of influence. Creating an analytical culture within marketing is dependent on IT infrastructure and expertise. IT needs marketing to advocate for the value that IT provides. Together, there is power.

Finance and Marketing also have a close connection—sometimes pleasant, and sometimes stressful. Just as Sales appreciates a focus on the numbers, so does Finance. So work with Finance to align metrics. If you can show that marketing activities are boosting revenue while reducing costs, Finance will love you and the relationship will flourish.

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Adele Sweetwood is vice-president of Americas marketing and support at SAS. She is responsible for directing interactive marketing plans and investments with a focus on increasing and protecting revenue.

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  • by Iaax Page Wed Oct 10, 2012 via web

    I have been working very hard to change the culture within the team of people I am working with right now.

    This article resembles "one day at the office" for me. Good to know I am not alone on asking people to be more professional about the day they do things.

    It is also very well written.

  • by Yaron Thu Oct 11, 2012 via mobile

    Great article. Too often I see decisions being made without seeing the data. Also monitoring your actions is critical. We need to create new programs and believe it will evolve based on the ongoing results. It's always evolving.

  • by Kari Thu Oct 11, 2012 via mobile

    I'm sorry to be the bearer of bad news, but if you are relying on metrics from tools like GA-especially when it comes to things like conversion funnels, your metrics are not valid. Those tools where created when web traffic was predictable. Prior to social platforms and mobile devices, audiences went to corporate websites, visited the 10 or so pages and gave you info that was fairly accurate. Now it only gives you a fraction of the picture on the search/purch journey, and often only of audiences in older demos.

    For accurate info, marketers must create concise marketing plans with custom kpi and roi measures and not rely on pre-social measurement tools.

  • by Andy Fri Oct 12, 2012 via web

    Premise is a little too flawed and general : "Like it or not, marketers have traditionally been viewed as creative types who rely on catchy copy, clever promos, and gut instinct to reach customers and prospects."

    Not since the advent of computers!

    In DM 'painting pictures' through data has been central to the whole discipline of segmentation, action, measurement, improve cycle. Or so I thought ;-)

  • by Jennifer D Mon Oct 15, 2012 via web

    One of the best ways we've found to be truly analytics-driven is to not just collect numbers and data, but to set actual goals and make sure that everyone on the team knows precisely what we're aiming for. This way, we can look at our data and easily see whether or not we're achieving what we've set out to...and if we're not, that's when we dig deeper and try to see where things are going off track, and how best to fix them. We recently wrote a blog post about creating goals in Google Analytics, which outlines the steps of how to go using this same method. Google Analytics has definitely made our job a lot easier, and it's continually being improved. We're big fans!

    Whereoware LLC

    Related blog post:
    Google analytics tip: boost your ROI with goal reports

  • by Park Howell Mon Oct 15, 2012 via web

    I know analytics are critical, but if you're hiring marketing people with a "passion for analytics," then you're really employing left-brain researchers with a love for bloated powerpoints than creative business communications. People buy with their hearts and justify their purchases with their heads. So while I agree that analytics are important to make sure you're being heard, how your customers are embraced from a wise brand storyteller trumps numbers every time.

  • by @deb_orton Wed Oct 17, 2012 via web

    I have had the very good fortune to work within this Analytically Driven culture that Adele Sweetwood describes. Each year we get better and more confident in our approaches and this article shares part of our journey.

    I did want to respond to a couple of the comments and possible shed some further light on our beliefs and practices.

    I would encourage us to refrain from beliefs that an analytics passion results in just left brain thinking. It certainly limits our hiring pool, but doesn't any search for true talent?

    Our belief in this culture is leading us to new organizational teams, made up of a mix of analytical talent and marketing prowess. The focus on this culture is allowing some of our best marketers to rise up through the use of our analytical tools and get orders of magnitude better results. We are going beyond segmentation to the analysis of behavior online and more.

    Yes, we are SAS and we are enjoying drinking our own champaign. The new marketing analytics tools are one thing, the leadership and talent to exploit those tools is yet another.

  • by Camille Isaacs-Morell Wed Oct 17, 2012 via web

    This is not only a well-written article, but it points marketers to the need for an integrated approach to marketing. An integrated approach requires the use of competitive intelligence, research data and sound analytical skills to develop and deliver strategies and tactics that add to the bottom line. We need to stop treating the various aspects of marketing in silos. For example, the marketing communications copywriter also has to have sound research and data analytical skills so that the marketing message is appropriate, targeted and leads to the desired outcomes of engagement, loyalty and purchase.

  • by Sergio Meana Wed Oct 17, 2012 via web

    Canīt be more in accordance with your article. In In-Store Solutions (EMPRESAS AMERICA division), store planning & store fixtures suplliers, we had tried for years to modify intuition as the only plannign gear, we try to move our accounts to a learning & evolution endless process that may create brands, merchandising systems, align them to sales floor, modify planograms on shelves or POP diplays, but always out from hard data, out from analytics. Our counter parts, mostly marketing areas on brands and/or stores, had dramatically evolved in recent years form intuitive and inspirational skills to decision making process much more based on figures, as mentioned in the article, innovation is still the chore part but aligned to data any brand can drastically perform better results.

  • by Kathy Y Thu Nov 8, 2012 via web

    Best example of analytic marketing being flawless executed is the election results. Whether you voted for the incumbent or not, his team zeroed in on data facts and engaged appropriately for maximum results.

  • by Akshita Tue Feb 4, 2014 via web

    Great article here. Establishing a data-driven marketing program can do wonders in bringing about objectivity to the whole process. Here's a related post I'd read elsewhere that adds to the discussion

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