Data is helping companies to become more customer-centric but many still lack a strategy.
The vast majority (86%) of our surveyed 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”.
However the research also found that most organisations don’t have a data analytics strategy and two out of five are lacking a framework for their measurement requirements.
The new report, based on a survey of almost 900 digital professionals, looks at how organisations are using data strategically and tactically to generate insights and to improve business performance. The research also focuses on the important role for data and analytics in supporting their attempts to build a competitive advantage by becoming more customer-centric.
Here are some key takeaways from the report.
Data-driven customer insight drives business strategy
Gone are the days of businesses having to rely on generalised demographic insights as the basis of product development and marketing campaigns.
Now organisations have the ability to identify accurately how, when and why their customers engage with their brands on their various channels.
With the multitude of owned and third-party data available, it is unsurprising that organisations have a better handle on who their customers are, and are making use of this information strategically.
As we mentioned above, 86% of responding companies indicate that their “understanding of customers is increasing over time” and the research further suggests that organisations are actively attempting to turn their insights into action, with 60% of companies saying they “change and adapt marketing strategy based on customer insight”.
There is still a lack of confidence in attribution
Attribution, and its associated difficulties, has been an ongoing point of discussion within the digital marketing industry for a number of years.
Though technology has improved and tools have been developed to assist marketers in attributing value correctly to each channel, many still find models other than last-click problematic to implement.
More than half (58%) of companies are using attribution, however 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 (34%) were ‘unsure’ of this and 13% were not confident at all.
The rise of tag management
The 2013 version of this report found that 24% of companies were using tag management systems, but that number has now more than doubled to 54% of organisations.
Just under a third of respondents (32%) say their companies are using free solutions (such as Google Tag Manager), while just over a fifth (22%) are using a paid-for solution.
As for the benefits of using a tag management system (TMS), one of our respondents replied:
The tag management system has absolutely aided quicker turnaround for new initiatives, greater control for analytics and better quality of data across multiple platforms.
For more detailed insight, download our full 54 page report: Measurement and Analytics Report 2015.