The 5 areas where marketing analytics faces huge challenges
With the increase in data, marketing analytics has become a significant part of any marketing strategy. However, challenges in marketing analytics persist, which at times can be weary. And to add to it, the COVID-19 pandemic has dramatically impacted the face of marketing and business dynamics.
The recent CMO survey concludes that the maximum of the marketers now depends on data collection and usage. And the expenses on digital marketing have also increased significantly. On the contrary, according to the 2018 survey of CMO, having the right data wasn’t the primary focus of marketers, but it is so now.
In the current scenario, if you want to make the maximum out of your marketing strategies, you must focus on marketing analytics. This article has addressed the most updated challenges in marketing analytics and how to resolve them.
5 marketing analytics challenges businesses face
1. Data boom
Google alone processes 63k searches every second. Then there are other search engines and social media, which have become a part of our lives. Overall around 2.5 quintillion bytes of data are created every day.
In the last two years, we have created 90% of the world’s data. And it’s expected to double in the coming two years! So, imagine the amount of data marketers will have at their disposal. This data boom or explosion can be critical if marketers do not know how to utilize it.
The first step of data collection should start with the business objective. Once you know what you want to achieve from the data, collecting relevant data will become easier.
Next is to develop skill sets and encourage harmony between your IT and marketing departments. With more than half of the world being present on digital media, it’s essential to tap it. And that can be effectively done when both these departments work together.
An article by Forbes explains how the world has become data-driven and what a marketer can do to maximize it.
2. Access to important data
Despite the huge amount of data, a gap still exists – it can either be a miss in tracking the marketing and customers’ activities or incomplete data records. In both cases, it causes a hindrance in tracking the marketing efforts. Furthermore, it can also lead to incorrect data analysis.
Before moving on: Know the impact of data analytics in digital marketing
According to experts, this is one of the most common and easily addressed challenges in marketing analytics. Marketers should consider both traditional and online tools. For instance, we haven’t completely done away with banners and other forms of conventional marketing channels. Similarly, we cannot eradicate the traditional marketing-analysis techniques.
3. Fast-changing trends
Take the current scenario; in 2019, did anyone imagine 2021 to be as it is now? Marketing dynamics have changed, and so have consumer preferences. Digital media is the way of life!
We always knew that market trends are ever-changing. And to keep up with it, we need to study them closely. But, at the rate at which the business environment is evolving, it isn’t easy to keep pace. Forget about predicting the future; without analyzing the real-time data, developing the correct marketing mix will also be challenging.
To generate the best results, you need a perfect agreement between your intuition, marketing analytics, and reporting tools. You now have tools with Artificial Intelligence (AI) and Machine Learning (ML) features. Using these, your marketing analysts can collect real-time data and have access to it on the go. Data, when in the hands of the right talents, can give you meaningful and life-changing insights.
4. The right talent
One of the most prevalent challenges in marketing analytics is having the right talent pool. Hiring the right talent can take months. And with technologies evolving every day, this task is becoming more daunting. It’s essential to work with someone who not only is skilled but also has the right aptitude. Your marketing team should have a perfect blend of resources who know marketing tools, data analysis and comes with experience.
This challenge can be handled in 3 ways:
4.1 Upscale your current resources
Assess your current teams’ strengths and weaknesses, their willingness to learn, and their commitment to your company. This will help you to recognize the resources on which you can invest your time and money. Next, you can encourage them to participate in webinars, get online certifications, and learn new tools.
4.2 Hire new talent
If your current pool lacks the willingness or ability to upgrade, you will need to hire an analyst. Marketing analytics personnel should have the problem-solving ability, understand data, and know BI and reporting tools.
4.3 Work with marketing consulting firms
While the above two solutions build your inbound team, they are time-consuming. Often, SMEs do not have the right hiring manager to perform these tasks. The best solution is to get into a partnership with a marketing analytics firm. These consultancy firms have the right tools and resources, and they also bring in experience from different industries.
5. The right tool
One of the critical components of marketing analysis is technology, which helps you conduct your analysis. But, the challenge arises with a large number of tools available in the market. Explaining how to select your solution, Neil Patel had said, the platform shouldn’t be cumbersome and arduous.
But, it should be user-friendly and meet the specific needs of your marketing team. If your marketing team does not know their priorities, selecting the right tool can be difficult and expensive.
When selecting a marketing tool, keep in mind the following:
- Use a tool that meets your business requirements.
- The tool should be flexible and robust to meet your future needs at no or less cost.
- You will need to collect data from different channels, and the tool should be capable of that.
- If you’re just starting with marketing analytics, opt for a tool that’s easy to use and integrate with your business.
- Last but not least, check out the cost and if it fits into your planned budget.
If your focus is digital media, use Google Analytics. It comes for free and performs a thorough analysis of your website and social media traffic. However, if you want to compile your online data with other databases, you can use Power BI or Google Data Studio.
Marketing analytics helps you understand your market and consumers’ need. If you can perform it effectively, it will help you extensively utilize your marketing budget and get the best ROI. We have highlighted the predominant challenges in marketing analytics and the solutions. So, be prepared with the solutions before the problems arise and reap the most from data-driven decisions.