Marketers who use data insights to drive their marketing campaigns are three times more likely to report having a competitive advantage in terms of customer loyalty than those who don't, according to a study from Turn and Forbes Insights.
The research found that 74% of marketers who are considered 'leaders' in data-driven tactics achieve competitive advantage in customer engagement and loyalty, compared to only 24% of marketers with limited or no data-driven strategies.
The report, entitled 'Data Driven and Digitally Savvy', was based on a global survey of more than 300 executives and concluded that data-driven marketing is crucial to success in a hyper-competitive global economy.
The report looked at leaders in data-driven marketing, compared to executives who see themselves as lagging behind, and finds that almost half of marketing executives believe their efforts are lagging, or siloed across the business making it difficult for them to capture and use a wealth of data insights. It is this use of data from across the business however which is driving significant results across businesses for the 'leaders'.
Marketers conducting data-driven marketing are more than six times as likely to report an advantage against competitors in terms of profitability (45%) and are three times more likely to have increased revenue than their counterparts not using these insights. 55% of marketers driving a marketing campaign from data insights see increased revenue, compared to 20% of those marketers not conducting data-driven marketing.
"This study highlights the importance of gathering data and expertise for marketing efforts. Marketers have been employing data in various forms for some time, but recent innovations mean marketers now have more in-depth data sets which match the customer's exposure to a brand," said Pierre Naggar, managing director for Turn in Europe. "However, organisations need to invest in methods which can collect this data across the business, and not in siloes as currently happens in many cases. By drawing on resources across the business, such as sales data, customer enquiries and indicators into customer loyalty, marketers can base their decisions, for marketing campaigns as well as to inform wider business decisions, on what their customers really want, rather than rely on guesswork."
The report also revealed that sectors leading in data-driven marketing include the travel industry and the retail industry, while the energy sector lags behind. Some 67% of travel executives say they have gained competitive advantage in the sector with higher customer loyalty as a result of data and 55% of retail executives agree, compared to only 33% of executives in the energy industry. A further 59% of travel executives are seeing higher customer satisfaction through harnessing data insights, while 52% retail executives thank the use of data-driven marketing tactics for achieving new customers.