Data Driven Marketing Proof is in the Pudding
The proof is in the puddingâ€¦ Marketers are now required to do more with less and show valid ROI for all the ingredients baked into their marketing initiatives. According to a study by the Lenskold Group, two-thirds of marketing leaders said their CEOs and CFOs expect them to show measureable ROI in order to justify their marketing budgets. With all the data available to justify go-to-market strategies, why is cooking up measurable marketing effectiveness still such a challenge? Why arenâ€™t marketers proving their pudding? Probably because it isnâ€™t an instant or easy-bake solution â€“ especially when the pudding is spread across different databases, half eaten, or not even of the best qualityâ€¦
The market has changed. The days of exclusive outbound marketing tactics â€“ buying lists and blasting the heck out of every contact in every industry â€“ are dead. Your customers are more educated on your products and services than ever before. How do you become more educated on who they are? Persona development is one thing, but what companies are your ideal targets? What characteristics should your sales team be aware of to properly qualify prospects? To answer these questions, we must first look at your data, your pudding, and clean it up.
According to research by Sirius Decisions, for every 1% of data quality improvement, marketing can generate an increase in incremental revenue of between 5 and 6%. Database marketing companies can clean and append important site-level detail to your accounts. Just make sure you source this data from well-vetted vendors, but as much as possible, avoid compromising quality to save on cost. Otherwise, it will be bad data in, bad data out. Choosing a vendor that provides information beyond what is industry specific is also important. Sic nâ€™ Size information wonâ€™t provide you with the site-level behavioral characteristics needed for proper analysis. In a recent study done by the Aberdeen Group, researchers found that top-performing companies were more likely to incorporate both internal data sources and customer information like demographic and firmographics, and external data sources on customer behavior into their predictive scoring models for segmentation and targeting.
So now that your pudding is consumable, how do you make it yummy AKA appealing enough to show proof of strategy to those CFO and CEOâ€™s pounding at your door for more? Letâ€™s start by taking a look at your, now clean, data.
Marketing analytics are being used for smarter and much more satisfying prospecting efforts. The pudding is being mathematically perfected with algorithms that model a path to contact companies with a high likelihood to be your potential clients. By looking at your current client base with that appended 3rd party-data, for example, you can determine what your best prospects look like. Maybe they all have a similar number of on-site servers, printers, networks, or other installed technology as an indication of need or relevance. Identifying these characteristics will help you better qualify future prospects, increasing close rate and speeding the velocity of leads down the sales funnel. In fact, leading companies who utilize predicted analytics for marketing see a 9.3% average response rate to marketing campaigns compared to 3.8%Â for followers or bottom performers according to the Aberdeen Group. Showing proof in where you have found success previously can provide insight into what your future strategy should be.
What is that you say? Youâ€™re a marketer, not a mathematician? Well, youâ€™re not alone. Most companies use a dedicated customer or marketing analytics solution. In fact, most best-in-class companies, 45% to be exact, use this type of solution.
Donâ€™t miss the mark on using your data to drive strategy and quicker pipeline conversion to close. The proof is indeed in your pudding, so be sure you have all the necessary ingredients for success.
For more information, content, or a consultative conversation, contact Tiffany today!