The CMO Survey Blog

Marketing Analytics: What Gets Evaluated, Gets Used

“What gets measured, gets managed” is a well-known management maxim. However, for marketing analytics, results from The CMO Survey suggest a slight twist on this adage to “what gets evaluated, gets used” (see cmosurvey.org/results/ for a complete set of reports).

To look into this topic, I asked top marketers two questions. The first was “In what percent of your projects does your company use available or requested market analytics* before a decision is made?” The average score was 37.2% of the time. The more important point is that 62.8% of the time managers are not using marketing analytics that are available or that have been requested!

To understand how the use of marketing analytics is related to the quality of marketing analytics, we could ask managers to rate the quality of marketing analytics and examine whether this is correlated with use of marketing analytics. However, if most managers are not using marketing analytics, measuring quality impressions is problematic—specifically, we would only be examining users of marketing analytics, which is not a representative view of what all potential users think about the quality of marketing analytics.

Given this, I took a different approach and asked top marketers to answer a second question, “Does your company formally evaluate the quality of marketing analytics?” 67% of top marketers answered “no.” To examine the relationship between the evaluation and use of marketing analytics, I calculated the mean marketing analytics’ usage level for companies that do and do not evaluate marketing analytics. As shown in the Figure 1, this difference is substantial, with marketing analytics used only 32% of time in companies that do not evaluate marketing analytics and rising to 49% of the time in companies that do evaluate marketing analytics. This difference is also statistically significant. There is no way, of course, to determine the causality of these two indicators—greater use is likely to affect the propensity to evaluate marketing analytics and greater evaluation of marketing analytics is likely to improve its use. Regardless, what gets evaluated, gets used.
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Using Marketing Analytics: I Do, Therefore, I Think

I recently reported that The CMO Survey found companies expect to increase the marketing analytics portion of their marketing budgets by 60% from 5.7% to 9.1% in the next three years. This is a monumental increase especially given that marketing budgets overall have grown only 8.3% over the last two years. While impressive, the true mark of whether marketing analytics is going live up to its expected role as a critical strategic asset cannot be measured by spending. Instead, we have to consider how marketing analytics affects what managers do and think and how well they perform.

To gauge this impact, the February 2012 CMO Survey asked top marketers to answer this question: “In what percent of your projects does your company use available or requested market analytics before a decision is made?” The average score was 37.2% (95% confidence interval: 31.5%-43%). This means that 62.8% of the time, managers are not using marketing analytics! By this measure, marketing analytics must do more. If not, its funders will place bets on other strategic weapons they believe will allow the company to serve customers better and to pull ahead of competitors.

Company Use of Marketing Analytics in Decision Making

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