2013 will be a year of investment for marketers, especially in the area of analytics. In the recently released report, “Marketing Budgets 2013,” over half of all companies reported they plan to increase their digital budgets by 20% and, of those, nearly half will increase spending on analytics.
The old saying, “you can’t count what you can’t measure,” has never been more accurate. As marketing organizations feel added pressure to be accountable for their results and consumers are demanding more relevant experiences, one of the key areas for improvement comes in the form of analytics.
Customer data is one of the most valuable commodities in the business world today, but it has become just that, a commodity. Its value is not in its raw form, but in the way it is used to target, create and optimize the customer experience.
Companies are correct to increase their investments in analytics, but should be careful not to fall into the traps of simply collecting data for data’s sake or believing analytics is nothing more than counting page views and traffic to your website.
Today’s technology enables the marketer to learn about both their customer’s and their prospect’s behavior and attitude. It can be used to optimize experiences in real-time and within the context of the experience. It can also optimize the outcomes of the experience according to whatever form of “conversion” is appropriate.
The first step towards reaching your analytics’ potential is to understand what you’re trying to accomplish and determine if you have the data and the tools to influence, measure and optimize the outcome.