Dan Roden, Senior Director, Product Advocacy, Domo, discussed the importance of data for today's chief marketing officers in his presentation to Argyle's CMO membership at the 2016 Chief Marketing Officer Leadership Forum in Dallas on Dec. 8. In his presentation, "Know Your Numbers – Why So Many CMOs Fall Short in the Eyes of the CEO," Roden explained how CMOs can collaborate with CEOs and drive meaningful results within organizations of all sizes.
According to Roden, consumer data is readily available to marketers. Customer surveys, social networks and other online sources provide marketers with a wealth of customer data, but mining these data sources and obtaining meaningful insights from them often remains a challenge for marketers worldwide.
Furthermore, many data analysis tools are available to marketers, but these tools can overwhelm marketers if they are not careful. Although data analysis tools can deliver substantial value for marketers, understanding how to utilize these tools to transform customer data into customer insights is key. Otherwise, marketers who merely purchase such tools but fail to learn how to use them properly will struggle to justify their spend to CEOs.
"The more measurable your spend, the harder your job is," Roden stated. "And right now, digital marketing is the most measurable attribute in your company other than finance."
Marketers can gain a wealth of customer insights thanks to data analysis tools. Conversely, many departments within an organization remain siloed, and marketers must be able to collaborate with multiple departments to optimize the value of customer data consistently.
"Every answer is in its own little silo in your company and you may or may not have access to it," Roden pointed out. "It's not that you don't have enough data. … Everybody has those answers, but how are you getting the answers? That's the challenge."
Moreover, marketers must be able to understand how data analysis technologies can help a business achieve its immediate and long-term goals.
"The more measurable your spend, the harder your job is. And right now, digital marketing is the most measurable attribute in your company other than finance."
Each data analysis technology may serve a different purpose, but marketers must deploy processes that ensures they can maximize the value of each technology at their disposal. By doing so, marketers will be able to assess a wide assortment of customer data and obtain meaningful insights to ensure a business can accomplish its goals both now and in the future.
"Your CRM does something for your company. Your ERP does something for you," Roden said. "But what do they do, and how do you grab information from [these technologies]?"
In many instances, marketers lack the necessary processes to transform customer data into meaningful insights, and perhaps it is easy to understand why.
Many marketers will utilize data analysis tools to mine customer data and gain customer insights, which may deliver limited results. Comparatively, marketers who understand how each data analysis tool works will be able to mine customer data from multiple data sources simultaneously.
"Your CRM does something for your company. Your ERP does something for you. But what do they do, and how do you grab information from [these technologies]?"
Thus, marketers will be able to implement processes to collect a broad array of customer data and understand the true value of this information. The processes also will allow marketers to provide sales teams with data-based leads – something that may help sales teams drive consumer engagement and increase their conversion rates.
"I had to start with the problem. I didn't know which sources were the most valuable to the lead source team," Roden noted. "If the budget is tight, I don't know where I can safely pull back. … And I don't have data to support my lead quality to sales."
Ultimately, marketers require data to justify their investments. Without the ability to answer questions from sales teams and CEOs, marketers may struggle to get the spend they need to drive meaningful business results.
"Once we get into that lead source, does the sales funnel go through every stage? … If the answer is 'No,' stop. There's nothing else you can do. Fix that," Roden stated.
Developing effective data collection and analysis processes is important for marketers. With the right processes in place, marketers will be able to understand how a consumer moves along the buyer's journey. In addition, marketers will be able to identify customer behaviors and trends and use all of the data at their disposal to help their businesses build long-lasting customer partnerships.
"If you cannot put a breadcrumb Hansel and Gretel style from the moment a [visitor] comes to your website, filled out a form and raised their hand and said, 'Yes, you can talk to me' … and put that breadcrumb on each individual point in the customer journey, then it's not a technology problem, it's a process problem," Roden said.
For over a decade, Dan has been engaged at the forefront of the marketing analytics community. Prior to his time at Domo, Dan spent four years as Manager of Web Analytics for Major League Baseball Advanced Media, leading implementation and measurement strategies for nearly 200 web properties. Dan originally gained his experience and insight starting in 2004 as a senior analytics consultant for Omniture (acquired by Adobe 2009) where he helped architect web analytic practices for enterprise companies such as American Express, AE Sports, MTV Networks and Saks Fifth Avenue, among others. Dan has been at Domo since inception in 2010 where he has driven marketing strategies for the unicorn company now valued at $2B.