London, Thursday 16 July 2015

Companies are getting better at using data and digital analytics to support their understanding of customers, according to research published today by Econsultancy in partnership with analytics consultancy Lynchpin.

The Measurement and Analytics Report 2015, based on a survey of almost 900 digital business professionals, focuses on the digital analytics sector and looks in detail at the analytics requirements relating to understanding customers.

The vast majority (86%) of responding companies indicate that their ‘understanding of customers is increasing over time’, while more than half (55%) ‘use data effectively to build their understanding of customers’.

The most important analytics requirements for responding companies in the context of customer understanding are ‘identifying patterns of content engagement and campaign response’ and ‘personalisation and targeting’, cited as top-three requirements by 57% and 55% of respondents respectively.

However, the research also found that most organisations don’t have a data analytics strategy and two in five are lacking a framework for their measurement requirements.

The research found that only 34% of organisations have a formally documented data analytics strategy, and less than a fifth (18%) have strategies which straddle the digital and non-digital worlds. Some 58% of organisations have a framework to structure their measurement requirements, compared to 42% who don’t yet have one.

The report has also found that there has been a significant drop from 40% to 23% in the number of responding companies who say that analytics ‘definitely drive actionable recommendations’ which make a difference to their organisation.

The research found that 50% of companies will be increasing their analytics budgets for internal staff over the next 12 months, a percentage which has climbed from 46% last year.

Econsultancy Research Director, Linus Gregoriadis, said: “The research shows that companies are still fighting to cope with a deluge of data coming at them from all directions. Most companies lack confidence to turn their data and analytics into decisions for their business, and this likely stems from a lack of an overarching strategy and framework to help them collect and measure the right data. On the plus side, companies are increasingly harnessing data in their attempts to become more customer-centric.”

Lynchpin Managing Director, Andrew Hood, said: “The breadth and depth of the data industry grows every year, and analytics success increasingly feels like a bit of a race against the clock of expectation. There are a lot of positives since last year: more recognition across teams of the importance of being customer-centric from a data perspective, more focus on sharing data between tools/silos and more accessible technologies for merging larger datasets. The excitement and drive for personalisation has pushed a lot of this towards the top of the agenda.

“However, a lot of these positive trends open up a catalogue of opportunities that need some resolutely clear focus to turn into commercial benefit. Key skills are clearly still proving challenging to recruit, and that begs the question of where that talent is best directed – call it an analytics strategy if you like.”

Other findings from the report include:

-) Two in every five companies (40%) say more than half of their collated analytics data is useful for driving decision-making, an 8% increase since 2014 and the highest proportion since 2012.

-) More than half of companies surveyed are using a tag management system (TMS). However, less than half of companies (46%) have mapped out a data layer for their TMS, a process which is a prerequisite for successful tag management and data strategies.

-) Supporting deployment, translating business requirements into analytics requirements, and training end users are the three areas where the support of digital analytics vendors is most in demand. At an overall level, responding companies are significantly more likely to be happy than unhappy with their vendors, and generally respondents are also satisfied with the pace of technology changes.

-) Those who have deployed a big data technology solution are still in the minority (11%), but a further 24% are considering one.

-) More than half (58%) of companies are using attribution, but only 8% of those using a model are ‘very confident’ that it is based on facts about their data and business. More than a third were ‘unsure’ of this, and 13% were not confident at all.

Get this report:

The full report is available on the Econsultancy website here: https://econsultancy.com/reports/measurement-and-analytics-report-2015

The report is available to Econsultancy subscribers.

For more information about this report, contact:

Linus Gregoriadis, Research Director, Econsultancy
linus.gregoriadis AT econsultancy.com
+44 (0) 207 269 1450

About Econsultancy

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About Lynchpin

Established in 2005, Lynchpin is a full service analytics consultancy. Consultants, analysts and engineers work together on data projects to give a responsive, cohesive and advanced service.

Understanding customer behaviour is crucial to growing your business. Lynchpin elegantly extract, integrate and interpret data, giving our clients clarity to make the best decisions for their business.

From statistical modelling to optimisation, our independent team of analysts, consultants and engineers work in harmony to create and refine bespoke strategies to improve your bottom line.

Our approach to technology implementation comes from an impeccable understanding of the available options on the market. Our advice is unbiased and we endeavour to create a cost effective and scalable solution. We select the right tools for the task and ensure they are effectively deployed.

With extensive expertise across sectors, dealing with unique requirements and company cultures, we pride ourselves in being candid, approachable and supportive. We are happy to work alongside your in-house team to get the best from reporting tools.

Lynchpin works with Experian, Canon, HSBC, Cartoon Network, Tesco Bank, Dyson, New Scientist, Waitrose and the Government Digital Service amongst others.

Please visit our website www.lynchpin.com to find out more, or contact us on 0345 838 1136.

Published on: 10:02AM on 16th July 2015