A top marketing challenge is converting data into analysis that can then be used to generate greater demand. It sounds so simple. But it isn’t. Industries have been born trying to solve this problem. CMOs have been hired and fired trying to address this challenge. And the problem persists.
To better understand the top challenges marketers face converting data into customer demand, I talked with Randy Guard, the EVP/CMO of SAS, the world’s leader in business analytics software and services. What follows are his thoughts.
Key Challenges Converting Data Into Business-Generating Demand And “The Fixes”
1. CMOs who aren’t comfortable with data. There is a wide range of CMOs with different training, experiences, and capabilities. For some CMOs, analysis and data is in their DNA. For others, it isn’t. If the leader of the function isn’t comfortable with data then this will negatively impact the ability for the function to effectively leverage data and analysis.
The fix: The solution to this challenge is to build a small center of excellence comprised of really strong analysts (e.g., data scientists). Lean on these individuals to help educate you on how to analyze data and use it to generate insight. As an example of how this can work, I refer to a case where all of the business leaders would bring their analysts to every key meeting. When a question was asked were data/analysis was required, rather than delaying the discussion to another time, an analyst would run the analysis in real-time and provide an answer. It enabled the leaders to make faster decisions and to become more data-based in their interaction and thinking. This is a simple fix—hire the skill and learn from them and align them with the business leadership.
2. Data-based thinking isn’t in the organization’s DNA: There are many CMOs who struggle because the firm isn’t comfortable with data and analysis. If the CMO brings an analytics focus to the leadership team who then balk at the analysis to cover up insecurity, it will be hard for the CMO to drive change. Further, if the firm isn’t supportive (including the CEO), it’s likely that the prioritize operational investments over investment needed to build the infrastructure to effectively manage and leverage data.
The fix: Unfortunately, the only way to fix this is to win over the CEO and gain his/her sponsorship. Executive level sponsorship plus having the talent on hand is the key combination.
3. Can’t attract/retain the right talent: A challenge I hear from CMOs in smaller firms and in some industries that don’t have a great reputation for being data-driven is that they are struggling to add analytical talent because: 1) they can’t find them, 2) they can’t attract them to join the company, or 3) they can’t retain them. For example, financial services firms don’t often have this challenge. That’s because they’ve always been data driven and aggressive in acquiring and retaining analytical talent.
The fix: One fix is to pay analysts more because it is a hot skill right now. Another fix is to create the type of environment that analysts want to work in. If they are simply leaving for more money, then it means they don’t love what they are doing at the company. The final way to solve this problem is to outsource the work but this comes with some risks that you will not have the capacity and capability as part of our company DNA if you always have to go outside.
4. Not fully knowing who the prospect is, what they want, and where they are in the customer journey: A key barrier that I see is that marketers don’t start with the basics: 1) who is the prospect—really, 2) what is their real issue set, and 2) where is the customer in their journey? You hear these concepts a lot, but in most cases, marketers don’t have the answer as the granular level. As an example: assume that a customer is visiting your website and they click on a video and read two white papers. Many firms would immediately throw the prospect into the sales cycle and start bombarding them with content until it annoys the prospect. However, what if I told you that the customer is a CMO who has just found out that their firm has a new regulatory constraint and they are in the fact-finding, exploratory, understanding stage. They are seeking insight and information. They haven’t begun to think about buying something. Would it be appropriate to automatically toss the prospect into the sales cycle just because you have their email? By designing your content, your approach, your marketing, and your sales around a deeper understanding of the customer, you will create a brand that delivers greater value and ultimately will be rewarded.
The fix: This is a hard problem to fix and unfortunately, it requires improvement in skills, systems, technology, process, integration, and collaboration. Understanding the customer journey and aligning your content marketing efforts are critical to success here.
Join the Discussion: @KimWhitler @SASSoftware @RandyGuard
