The number of data analysts on marketing teams has boomed in recent years as companies recognize the potential benefits of data analytics. But many organizations frequently under-utilize their data scientists.
Skilled data scientists and other leading analysts spend more time wrangling with data than uncovering insights, according to new research by Gartner. Nearly half of the business leaders at 500 organizations surveyed said some of their most experienced (and expensive) analysts spend most of their time organizing, integrating and preparing data rather than analyzing the data and seeking meaningful insights.
Marketing analytics accounts for 9.2 percent of marketing budgets — the largest share of any category. The average team size grew from a couple of people a few years ago to 45 full-time employees in larger companies. Yet analysts don’t always produce results that improve their organizations’ businesses.
“Some of the most skilled analytics talent spends their time doing work that is necessary but not necessarily the work that will drive competitive differentiation and breakthrough insights. Analysts don’t have the time, tools or processes to execute on their vision,” states digital marketing expert Chris Pemberton for Gartner.
Gartner recommends that marketing leaders take the following steps to transform their companies into data-driven organizations.
Rethink allocations of resources. Given the rapid growth in data analytical staff and funding, leaders need to question if they need so many dedicated in-house analysts. Consider outsourcing and automation to allow talented, expensive data scientists to focus on seeking valuable insights and relieve them from more mundane tasks.
Become a (personal) data steward. Addressing privacy concerns, including managing consumer consent, has become a priority. Nearly three-quarters of respondents say consumer privacy concerns will create barriers to marketing analytics practices. Meeting privacy regulations will be crucial.
Let good enough be good enough. Marketing analysts can spend the bulk of their work week shepherding, wrangling and corralling data. Trying to achieve perfection when organizing data can consume large amounts of time that is better spent on more advanced and beneficial analysis. “In the world of marketing analytics, perfection is getting in the way of analysis and proving to be the sand in the gears of the entire analytics engine,” Pemberton states.
How to Become a Data-Driven Marketing Organization
Other experts say commitment from the organization’s leadership is critical to become a data-driven marketing organization.
Most companies have plenty of data, but most is not beneficial. An earlier CMO survey revealed that barely a third of available data is used to drive company decision-making. The key for successful data-driven decision-making is the quality of the data analytics, rather than the quantity.
First outline how the data analytics will be integrated into the organization, advises Mario Trescone, senior director of business intelligence and data analytics at YMCA. Ask how data will be used and why you need data. “The reality is many organizations rush to get the necessary BI (business intelligence) resources in place without taking the time to ask themselves how will BI fit into the culture of the organization,” Trescone says.
A central nucleus of data expertise helps ensure common standards, methods and tools for data collection and management of data, he says. It also increases the likelihood of board-level involvement and helps ensure that insights are available to employees.
While trained analytical professionals are essential, team members with business experience are also needed to obtain actionable insights, Trescone says.
“It’s always great to have the newest, shiniest marketing technology if your budget allows, but equally important are people who not only have the technical skills to collect and analyze data but, who understand it in a business context,” agrees Tara DeZao, senior content marketing manager at Oracle Data Cloud
Bottom Line: Marketing teams often under-utilize valuable data scientists and other analytical talent. Many of the well-paid, coveted employees spend much time managing and organizing marketing data, a poor use of their valuable skills. Experts urge organizations to reconsider how they allocate resources and to consider outsourcing and automation.
William J. Comcowich founded and served as CEO of CyberAlert LLC, the predecessor of Glean.info. He is currently serving as Interim CEO and member of the Board of Directors. Glean.info provides customized media monitoring, media measurement and analytics solutions across all types of traditional and social media.
