Marketers Turning A Blind Eye To Data?
We have had innumerable discussions over data being the epicentre of all industries and its pertinent role in shaping the future of marketing. The value of data is seen to be deeply entrenched in the overall functions of an organisation. With the demise of the third-party cookie leading to changes in the digital advertising ecosystem and privacy & regulation driving higher quality, first-hand data is ensuring more transparent value exchanges around content, experience and commerce.
It is perhaps interesting to read a rather polarising revelation that has captured the attention of many. The biggest (and surprisingly common) problem with most marketers is that they are not using data to its full potential. Giving credence to a report by Adobe, 87% of marketers admit that data is their company’s most under-utilised asset, even though businesses that apply data-driven strategies deliver five to eight times as much ROI as businesses without.
Even Nielsen reported in its latest survey how only 26% of global marketers are fully confident in their audience data. This comes after 69% of marketers believing that first-party data is essential for their strategies and campaigns, and 72% of marketers believing they have access to quality data.
Piali Dasgupta, Senior Vice President – Marketing, Columbia Pacific Communities, agreeing with the findings of the survey, says, “A marketer is exposed to excessive data every day. Whether it’s CRM or social media, performance marketing or PR – it can be quite overwhelming to sift through such volumes of data, unearth important consumer insights and take action. There is also a growing distrust amongst marketers of the entire digital ecosystem that can often operate like a black box with very little transparency. The digital space is fraught with impression scams, and unregulated ways of collecting data. So, the findings of this report are understandable.”
Admitting how essential data stands today, Chaitanya Ramalingegowda, Director & Co-founder, Wakefit shares that as marketing is evolving to be a deep combination of science and art, data has proven to be at the center of marketing.“Data enables impressive amounts of information to be obtained about identifiable customers' purchasing patterns and transaction histories. Data also has to play at the cutting edge of creating a user profile while staying well within the bounds of the law as well as protecting user privacy."
How is it impacting brand-building and customer acquisition?
Evidently, data is at the heart of brand building and customer acquisition and should be considered right from the get-go: i.e. when identifying your target audience. With continued digital fragmentation, marketers are now realising how data accuracy, measurement, and ROI are paramount.
“Marketers should place emphasis on brand building and customer acquisition through proper planning and execution. To ensure accurate ROI measurement, identifying the source of data is important. This could be internal sales, marketing pixels, or a combination of the two,” emphasises Ramalingegowda.
Marketers should also closely work with the audit team. It is necessary to have a good understanding of the customer base and how it impacts the brand’s profitability to be able to prove the return on investment, advocate experts.
We are aware that brands are built on stories because human beings are hardwired to connect with them. Stories need raw and real human emotions and authenticity. Of course, data helps marketers understand consumer behaviour to some extent and deep dive into insights. But it can never be the only thing one relies on. Dasgupta adds here, “As marketers, we must remember, that behind every data is a human being. We don’t sell a product to data, we sell it to a human being. And therefore, the data obsession that has gripped modern marketing can be quite detrimental.”
Bindu Balakrishnan, Country Head, India, DCMN further suggests how running target group analysis is the only way to gain real data and insights into your customers, whether that’s related to their socio-demographics, needs, interests, media behaviour or drivers for using a specific product or service. “Once you’ve built your customer personas, marketing teams can also better adapt their messaging and campaigns to appeal to these particular demographics,” she adds.
Hence, it becomes imperative for marketers to gain confidence in their data to focus equally on brand building and customer acquisition, doing so through both upper-funnel and lower-funnel planning and execution.
Over To The Marketers
Especially when it comes to campaign ROI, it is always advisable for marketers to look at both performance and brand metrics to judge how well a campaign has performed. Short-term performance metrics, such as the impact an ad has on website visits or downloads, only tell one side of the story.
For businesses that are investing heavily into holistic marketing activities that are primarily awareness-focused, brand builders also need to know the impact on brand metrics such as awareness, consideration, usage and loyalty, among others. By answering these trickier, more nuanced questions, brands can gain a fuller picture of marketing campaign impact and identify areas for growth.
"Running consumer surveys is the best way for brands to understand the impact of their campaigns, and this is an area where it’s particularly important to ensure data accuracy. Too often, businesses run surveys only on their existing user base rather than a wider audience. While the numbers might look good on paper, this means the data is highly skewed - and it’s impossible to know the real impact a campaign has had on society at large. In the long term, this will also impact a brand’s ability to reach wider audiences," mentions Balakrishnan.
Working with trusted partners, who have the knowledge and expertise to conduct accurate research surveys, is key: not only will you be able to fully understand the impact of your marketing activities, but this data will hold the key to long-term growth, sum the experts.
