In 2015, more than half of all marketers expect to see a positive return on their data-related investments for the first time, and almost 90 percent will invest in data solutions by 2016. Those were among the findings of a survey of 591 marketers conducted by Infogroup at the 2014 Direct Marketing Association Annual Conference in San Diego.
The marketing services and analytics company says its survey indicates that data-driven marketing is approaching a tipping point as marketers start to see returns on their big-data investments. But Infogroup also acknowledges that significant challenges to using data in marketing efforts remain, even for industry leaders, and that many marketers are still waiting to realize returns or haven’t even started investing in data solutions.
Among the annual survey’s findings this year and last:
- Portion of marketers who invested in data solutions in 2013: 54 percent
- Portion of marketers who did in 2014: 62 percent
- Marketers who say they will in the next two years: 26 percent
- Portion of marketers who saw a return on data-related investments in 2013: 39 percent
- Portion who did in 2014: 47 percent
- Marketers who expect their data-related budget to increase in 2015: 64 percent
- Those who anticipate a decrease: 4 percent
- Percent of marketers who say they don’t collect enough customer data:
- Percent who think they collect too much: 10
- Percent who are confident in the accuracy and completeness of their customer profiles: 21
- Percent who plan to take additional steps to protect customer data and privacy in 2015: 80
Infogroup’s survey also determined that the two biggest obstacles to personalizing marketing campaigns cited by marketers are difficulty integrating across channels and lack of quality data for segmentation. And the top three data-related challenges marketers expect to face in 2015:
- data analysis
- data application
- data collection
According to Infogroup, leading data marketers follow several common strategies. They “go beyond name, demographics and purchase history to use triggers, consumer-brand interactions and consumer interests;” they “personalize their marketing campaigns;” they “make greater use of segmented customer data across multiple channels; they “use data to send customized offers,” and they “rely more heavily on personalized campaigns.”
For the near future, Infogroup proposes that marketers’ biggest data challenge will be to consistently analyze and apply data to personalized efforts, incorporating data from multiple streams and distributing via multiple channels.
See the Infogroup website to download the complete report, “Big Data’s Big PayDay: Marketers Approach ROI Tipping Point in 2015.”