The availability of data, the ability to process it into information, and the role and effectiveness of marketing have drastically changed organizations. This data-centric approach to marketing has had various positive effects on the function, such as:
- higher effectiveness of programs;
- better targeting;
- more insights into knowledge of results;
- greater responsibility for marketing within an organization;
- better insight into the contribution of marketing, resulting in more powerful CMOs.
Impact of more and better data
This has a dual aspect. It supports policy decision-making, and those policy decisions are better reflected in the results. It shows exactly what is happening in a specific operation and what the performance of the GMO has led to. Evaluation is possible on a more objective basis than before.
Within marketing organizations, the method of measuring results has changed significantly. Results can be effectively mapped from the beginning to the end of the sale. Furthermore, the results are related to financial and organizational aspects, allowing for better insight in those areas as well.
The availability of factual data demonstrating the effectiveness of specific activities, and the speed at which that data becomes available, enables marketers to test many different hypotheses. All this data provides marketers with insight into the media. It can be determined which medium is most effective for conveying messages and achieving the desired goal.
CMOs can refute the marketing department’s contribution to the company’s results with facts. This increased responsibility means that the power of the CMOs is enhanced. As a result, CMOs can better serve the market and build better customer relationships.
Data white cloud
Just as successful as the results of the data can be, they can also turn out to be negative. A small adjustment to a piece of data can have major consequences for the result. Such a negative result does not necessarily mean that we can pinpoint its cause. It could be an error that did not fit our approach, a different strategic approach, or an assumption that was interpreted differently by the program. However, the data relied upon to measure our results and to prove our success to our organization may suffer from the aforementioned limitations. Furthermore, the CMO can manipulate the figures in such a way that the outcomes suit him or her best. And such manipulation of figures occurs in every industry. Previously, one could still rationalize away a negative result, but with the data, it is no longer that simple, because the cause of the negative result can also be traced.
What does it give the CMOs?
CMOs are presented with opportunities by increasing their ability to analyze data and information and by seeking effective ways to understand and use data. Knowing how to convert data into usable information is becoming increasingly important for the CMO. More and accurate data and data analysis are crucial for marketing. But even more important is the human capacity to know how, when, and where that data should be used. When we speak of data, the first thought is ‘information’, but when we speak of ‘Big Data’, it concerns the interrelationships of the data. That large volume of unstructured data presents a huge challenge for CMOs to store, process, and analyze in order to achieve results. However, do not stare at the data and information for too long; there is a chance that you will see something interesting that isn’t there.
