Oct 25, 2018
Companies Mastering Analytics Report a Nearly 3X Improvement to Business Decision-Making Speed and Time-to-Market with New Products
Neustar®, Inc., the leading trusted, neutral provider of unified marketing intelligence, in partnership with the ANA (Association of National Advertisers) Data Analytics Center released a groundbreaking report entitled How An Analytics Culture Drives Exceptional Business Results. The report draws on feedback from more than 150 marketing decision makers from U.S. companies that are ANA members.
The research reveals that analytics-based decision making supercharges business results for companies. Forty-three percent of companies with mastering (refers to companies with more mature analytics cultures) analytics cultures reported that they performed significantly better against key metrics, such as conversions, engagement, and growth. Nearly all companies agreed that data- and insights-driven decisions yield substantially better outcomes. However, even the best-in-class measurement tools and technology will produce little benefit unless the cultural mindset to deploy the insights consistently and within a common framework is present. The most effective analytics cultures are influenced by five core factors: strategy, technology, data-science expertise, organizational adoption and the ability to put insights into action.
“Brands simply can’t succeed today without taking a fact-based data-driven measurement approach to performance,” said Julie Fleischer, Vice President, Marketing Solutions, Neustar. “Measurement provides the feedback that is critical for companies to learn and improve. This research shows that measurement tools and technologies are necessary, but not sufficient to drive business results and a host of other key outcomes. Soft skills matter too. Companies need to develop a culture of analytics, championed from the top, with everyone coming together around a shared framework, currency, language and narrative in order to win.”
At mastering or mature companies, analytics cultures are built from the top-down. A top-down approach allows these companies to spend less time getting employee support – a challenge for only 40 percent of mastering companies compared to 87 percent of less mature companies. Mastering companies are also adept at constructing compelling data and analytics “stories” that communicate analytical findings in clear, succinct ways that can easily be translated into action. Another common characteristic of mature analytics cultures is reflected by the degree to which the analytical insights teams have a seat at the table for decision-making.
Since an ingrained analytical culture is such a significant contributor to improving business performance, companies seeking to build a transformative analytics culture should consider the following:
Use analytics to stay hungry and agile. Avoid preconceptions about where, when and how analytics can be applied in an organization.
Expand the depth and breadth of an organizations analytical focus. Many companies concentrate their analytics initiatives in an area with high visibility: the media budget. Mastering companies move beyond this to optimize decisions around pricing, store locations, assortment and other factors among the four P’s (price, product, promotion, place) of marketing.
Thoughtfully invest in analytics. Companies must recognize that building a true analytics culture never ends. Companies will know their analytics culture has taken root when new ideas and applications for analytics come from the ground up, rather than being pushed top-down.
Never stop investing. Companies must continuously invest in expanding analytics capabilities. Thirty-four percent of mature companies spend ten percent or more of marketing budgets on measurement and analytics.
“This study clearly confirms that advertisers who fully embrace analytics and make them a key part of their marketing mix will reap solid benefits,” said ANA CEO Bob Liodice. “There is no longer any doubt that marketers should give serious consideration to investing in their analytics capabilities if they haven’t done so already.”
The How An Analytics Culture Drives Exceptional Business Results report can be downloaded here.
Neustar, Inc. is a leading global information services provider driving the connected world forward with responsible identity resolution. As a company built on a foundation of Privacy by Design, Neustar is depended upon by the world’s largest corporations to help grow, guard and guide their businesses with the most complete understanding of how to connect people, places and things. Neustar’s unique, accurate and real-time identity system, continuously corroborated through billions of transactions, empowers critical decisions across our clients’ enterprise needs. More information is available at https://www.home.neustar.
About the ANA
The ANA (Association of National Advertisers) makes a difference for individuals, brands, and the industry by driving growth, advancing the interests of marketers and promoting and protecting the well-being of the marketing community. Founded in 1910, the ANA provides leadership that advances marketing excellence and shapes the future of the industry. The ANA’s membership includes more than 1,700 companies with 25,000 brands that engage almost 150,000 industry professionals and collectively spend or support more than $400 billion in marketing and advertising annually. The membership is comprised of more than 1,000 client-side marketers and more than 700 marketing solutions provider members, which include leading marketing data science and technology suppliers, ad agencies, law firms, consultants, and vendors. Further enriching the ecosystem is the work of the nonprofit ANA Educational Foundation (AEF), which has the mission of enhancing the understanding of advertising and marketing within the academic and marketing communities.