May 30, 2022 2:58 PM
Companies invest 13% of their marketing budget in analytics. What are their priorities and is the investment paying off?Muratov Andrey
Managing Partner at Coffee Analytics
Content
Priorities in types of analytics
What is the barrier to active use of information and data?
What changes will increase the value of analytics?
The pandemic has accelerated the digital transformation of buy phone number list companies. There is a need to solve analytical problems related to access to new data. The need for effective business processes and decisions made based on data has never been as high as it is now. Sanction restrictions on Western technologies (Google, Microsoft, Oracle) in the field of data processing, storage and visualization have accelerated the search for reliable alternatives by CIS companies.
The study examines the current priorities of companies in building marketing analytical systems, solving current problems, as well as their expectations for the next 3 years. The obstacles and difficulties that companies face along the way are assessed.
The interested reader will understand:
What is the practice in marketing analytics among companies from different segments and draw parallels with the company he works for (investments, format and size of the team, tasks to be solved);
Reasons why analytics is not used in decision making and evaluate ideas proposed by experts on how to increase the value of analytics;
What adequate expectations can his company form right now;
Standard analytical setup in a successful company (building an end-to-end, priorities in different types of analytics, implementation of GA4);
Reasons for the existing contradictions in working with data and strategies for overcoming them.
Key findings:
Companies in the CIS invest in marketing analytics twice as actively as the US market (13% versus 6-7%).
40% in total in “Predictive” and “Prescriptive” analytics is the “golden rule” of successful companies.
Hybrid teams of in-house and outsourced professionals perform better and are 77% more likely to rely on data to inform their decisions
Lack of skills within the company (29%), concerns about data quality (27%) and lack of understanding of how to use analytics to improve business performance (27%) are the main barriers to using analytics data.
46% of large businesses, 29% of medium businesses, and 16% of small businesses use advanced end-to-end analytics solutions. 25% of respondents still do not use end-to-end analytics. 28% have already switched to GA4, and 19% are planning to switch soon.
Interest in new ML/AI technologies in marketing is constantly growing. Their use is expected to grow by 100% in the next 3 years.
Full text of the study (pdf)
The work on collecting and processing questionnaires was carried out by experts from Coffee Analytics with the support of Calltouch, Mindbox and Matemarketing. The teams express their gratitude to all experts who took part in the questionnaire and provided comments.
The data for the first wave was collected in the fall of 2021 - winter of 2022, the next wave in the summer of 2022 will include current issues of import substitution of analytical software and change of marketing at the strategic and tactical level.
Take part in the wave summer 2022
The sample included 150 companies from various industries: retailers (food, clothing and footwear, goods for children and mothers, furniture and household goods, pet supplies) and service providers (logistics and transport, marketing services, telecom, finance and management, insurance, law).
How to invest in analytics
On average, industries and companies in the CIS invest 13% of their marketing budget in analytics. At the same time, they expect to spend up to 19% in 3 years. This is 2 times higher than the US market ( Deloitte CMO Survey , slide 62), which can be explained by the cost of advertising inventory and online promotion (which makes the budgets themselves significantly higher) and the high level of development of martech technologies.
Currently, in the CIS, Service companies spend a larger % of their budget on analytics – 15%, versus 10% for product companies, with a forecast of up to 22% in 3 years. This is due to both the greater value of the client ( LTV forecast over a distance of 1-3 years), and often higher marginality (compare the cost of expenses for providing a service versus purchasing, logistics and storage of goods in the price structure).
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As the study found, it is the companies that invest in analytics that see a higher impact on business performance from these expenses, which indirectly explains their desire to increase investments and move into the area of advanced analytics (predictive and prescriptive).
Although companies without a retail network are leaders and spend 16% (forecast - 21%), it is retail networks that expect to increase investments almost 2 times (by 83%), which, taking into account their turnover and marketing expenses, will have a positive effect on the development of analytical expertise.
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Micro and small businesses are expectedly ahead of other groups in percentage terms (17% and 14% respectively, versus 9-10% for large and medium businesses). Probably due to smaller marketing budgets.
In my opinion, the influence of loyalty program analysis is underestimated by companies, including, perhaps, this is due to the immaturity of the market. If you look at the last 5 years, then in the development of loyalty programs in many federal networks there has been a leap forward. Loyalty data provides enormous potential for studying the buyer both retrospectively and predicting his future behavior. I think in a few years we will see greater weight of this analytics.
Andrey Kudrin, Director of Analytics Krasny Yar
The current picture of the company's cash flow looks like this:
15% of turnover is spent on marketing
45% of the marketing budget is spent on online channels
13% - for marketing analytics.
And it will undoubtedly change dynamically in 2022-2023 under the influence of economic factors. Subscribe to the study to track these changes.
