Failing to make use of analytics by Catherine Ferguson
New research from Accenture reveals the majority of organisations are not making full use of analytics in their marketing strategies to target potential customers.
Most organisations ‘failing to make good use of analytics’
Friday, May 6 2011 by Catherine Ferguson
Companies using managed search engine marketing as a means to boost customers and gain a high website ranking may not be making good use of analytics, new research indicates.
According to Accenture, most organisations’ views on their use of analytics is divergent from reality. Its survey of 800 directors and senior managers at blue chip companies in the UK, US, Japan, Europe, Brazil and China showed that more than half (55 per cent) of respondents think their methods for segmenting customers and providing relevant experiences are either “ideal” or “very good”.
However, a separate survey reveals just 21 per cent of customers feel the companies they do business with are offering a tailored experience.
Over half of the organisations surveyed do not make full use of analytics to help them target, service or interact with customers. Accenture says this indicates most companies are unaware of their customers’ needs.
“Ten years ago, organisations could get away with relying on intuition to make decisions about how to engage with customers but today’s world is wired and interconnected in such a way that customer expectations and influence are greater than ever before,” commented Julio Hernandez, global lead for customer analytics at Accenture.
“Descriptive and predictive analytics enable organisations to draw fact-based conclusions about what customers are actually doing and what they are most likely to do and need.”
Accenture also claims that organisations that are using analytics in their marketing are not applying it across all their activities. Included in this is pricing, product and service delivery, and product development.
Mr Hernandez suggested that most companies have the wrong end of the stick when it comes to analytics. He said the majority of organisations view analytics as a tool to determine a consumer’s value to them, instead of the company’s potential worth to a customer.
The research suggests that increases in web advertising may not have the desired impact for many companies. Despite the apparent failure to use analytics to target services and products to consumers, organisations are spending ever more on advertising.
According to the latest WARC Consensus Forecast, global budgets for online advertising are expected to grow by 13 per cent this year. Suzy Young, data editor at Warc, commented: “Despite recent jolts to the world economy the recovery in the global ad market remains concrete.”
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