Silos are common in business, and none can be more detrimental to the success of an organization than the distance between marketing data and business data. Marketers gain significant value in connecting business data with marketing data to drive advanced decision-making— however, most marketers don’t prioritize this integrative approach, missing out on key conversion rate optimization opportunities.
What Marketers Are Good At
Marketers have become extremely adept at running and optimizing their marketing campaigns: They know their goals and KPIs. They are constantly optimizing their campaigns to reach or exceed goals. At the heart of all this is tracking, which is set up to measure the effectiveness of focusing marketing campaigns towards pre-designed goals.
All marketing goals are created as proxies for what’s really important – business value, and in most cases, that means sales. These post-activities translate into data and insights, of which marketing departments can easily and effectively take advantage.
Where Marketers Fall Short
While these data points are available, the reality is that most marketers don’t leverage these insights to improve their campaigns. For example, wouldn’t it be important to understand when marketing only garnered a one-time customer versus someone who made multiple purchases? Or to learn about a customer that generates $100 worth of revenue value versus $1,000 over the course of 12 months?
Marketers may be more inclined to build campaigns based on engaging different sets of users— but what if those users are engaging the brand, but not becoming customers? Or, to return to our previous example: What if the $100-worth customer from above came from one particular ad channel while the $1,000-worth customers come from another? Wouldn’t it make sense to allocate and shift more focus to the ad channel that brings in the more valuable customers? That answer would, of course, be yes. This is where business data offers context that is both insightful but also necessary.
Taking Advantage of Data
We want to encourage marketers to always integrate business data with their marketing data. Ideally, this would happen in real-time. If this is not possible, you can still obtain significant value from delayed analysis.
To achieve this, marketers must properly set up processes and systems that allow them to align the data between marketing and business, beyond simply gaining access to business data. We recommend setting up active partnerships with business data sources, i.e. finance or sales department data.
Then, it is important to generate a business intelligence framework where marketers determine how customer data must be analyzed and what information is and is not pertinent. For instance, is it imperative to analyze customers based on their 12-month revenue behavior or on their initial acquisition ROI? With so many options for analysis, prioritization must be done from the get-go.
Once this is finished, marketers can start tying in marketing tactics with the business data. How? By creating a system to match each marketing activity with some form of a trackable element. Then, this data can be overlaid with the business data. One way you can do this is by having customers that were acquired by Google be identified as such.
To continually make your campaigns more effective, you must connect them to your business data— the data you gain from actual sales. When effectively utilized, marketers can adjust campaigns more towards business impact versus just marketing impact – ensuring that your marketing outcomes always are working towards the highest business value generation.