Marketing Analytics Model Part 2

This month, we will continue with the second part of our updated Marketing Analytics Model. The model outlines the four phases through which companies typically progress on the path to becoming data-driven organizations. With the maturity of web analytics and its growing importance as a function of marketing, the phases have evolved since our original research was published 18 months ago. As organizations move from phase to phase, ROI improves and the culture of the organization develops into one driven by data and consumer insights.

Phases of the Marketing Analytics Model

Phase I: Foundation Building.  The goal of this phase is to build a solid foundation from which to extend your web analytics practice and online marketing programs. Typically, organizations are focused on implementing key marketing technologies (e.g., web analytics.) Executive support exists, but it is not yet widespread. Significant ROI has not been realized. However, the availability of data, even general data, fuels interest for more detailed reporting and builds momentum across the organization.

Phase I Key Tactics:

Strategy & Business Process:  Organizations have allocated resources to build web analytics capabilities and have started building the business processes that support value-creation tactics.

Infrastructure:  Key marketing technologies are selected (e.g. web analytics solutions), a baseline implementation is performed, and general data is now available.

Value Creation Initiatives:  Value creation initiatives are limited to basic reporting. Therefore, significant ROI and value is not yet realized, at least initially.

Phase II: Customization.  In Phase II, organizations begin to customize technology to meet business- specific reporting requirements. In addition, the adoption of web analytics across the organization begins. With better, high-quality, and relevant data, value creation initiatives produce more results, drive ROI, and secure funding for future investments.

Phase II Key Tactics:

Strategy & Business Process:  Senior management provides broader support and more resources as cross-departmental coordination is emphasized. Projects to define tagging standards and tag deployment best practices are representative of typical activities taking place in this phase.

Infrastructure:  The organization moves beyond the basic configuration and completes advanced customization to meet the needs of their business. Consideration is given as to how related marketing technologies (e.g., email marketing) should be used.

Value Creation Initiatives:  Important value creation tactics are underway, such as KPI development, which paves the way for a continuous improvement process and more consistent ROI.

Phase III: Optimization.  With robust data readily available, organizations can focus on gaining insights about customer preferences to accelerate ROI. Specifically, A/B and multivariate testing is used extensively to improve marketing program performance. The emergence of a sustained Continuous Improvement Process and the integration of online marketing technologies deliver consistent results and value. In addition, new insights emerge about customer preferences that set the groundwork for Phase IV: Predictive Modeling & Targeting.

Phase III Key Tactics:

Strategy & Business Process:  With a proven track record of delivering value, analytics is viewed as mission critical by senior management. Departments are aligned to generate additional value.

Infrastructure:  Extensive integration of online and offline customer data occurs, and emphasis is placed on the quality and reliability of the data.  New technologies that contribute to marketing optimization efforts are evaluated.

Value Creation Initiatives:  Value creation activities are constant and delivering consistent results. Testing and Optimization become an important part of the marketing process.

Phase IV: Predictive Modeling and Targeting.  With insights emerging from extensive testing and the integration of online and offline data presenting a complete view of the customer, organizations become capable of delivering highly targeted messages for customers.

Phase IV Key Tactics:

Strategy & Business Process:  The executive team views analytics as a core competency. Analytics is viewed as a path to sustained competitive advantage in the marketplace. Cooperation exists across all departments to support broad, company-wide initiatives that promote a “single-view of the customer.”

Infrastructure:  Technology is used to deliver a highly targeted and personalized customer experiences. Additionally, the infrastructure is created to store process and analyze multi-channel customer data.

Value Creation Initiatives:  Customer modeling and visitor segmentation frameworks are in place to drive targeted and relevant marketing programs.  Traditional offline statistical modeling is used to promote ongoing improvements in all marketing activities. Exploratory data analysis becomes a top initiative for discovering new customer insights and maintaining a competitive advantage in the marketplace.

Based on Stratigent’s research and findings, bigger budgets, more resources and the best technology doesn’t always equate to success and the development of a culture driven by data and consumer insights. Instead, a prudent, balanced approach to making investments and selecting the right web analytics initiatives is the primary predictor of success for organizations looking to compete with analytics. Our Marketing Analytics Roadmap serves as a useful guide for helping organizations evaluate their current capabilities and to provide insights into the investments and initiatives that are typical within each of the four phases found in our model. 

For more information please contact 877-427-8900 or email info@stratigent.com.