Why Analytics Investments Lack Sales/Marketing ROI
While the majority of organizations are heavily invested in analytics, very few are seeing this investment translate into the broad, positive impact they seek in sales and marketing performance, according to a recent survey from the Economist Intelligence Unit (EIU) and ZS. The resulting report, "Broken Links: Why Analytics Investments Have Yet to Pay Off," states that senior leadership considers sales and marketing analytics a high priority, and they're making decisions based on data instead of their "gut instincts." However, executives and analytics leaders generally aren't very effective at collaborating, and they face challenges in the form of action and change management, along with problem definition and framing. To improve, according to the report, companies must develop better domain expertise: knowledge of specific business processes and/or industry dynamics. "While nearly all companies invest in analytics, few organizations are getting it right and generating meaningful business impact," said Dan Wetherill, an associate principal on ZS's Analytics Process Optimization team and leader of this study. "Companies need domain expertise to achieve strong analytics outcomes from the areas where technology and business need to interact most: at the front and back ends of the value chain. Analytics professionals need to understand the business in order to accurately define the problem or business need, effectively design the solution, and then deliver the resulting insights in a way that more systematically drives impact and change." Nearly 450 U.S. senior executives took part in the research.