In the retail industry, research and analysis is vital in the understanding of the consumer product market. A report by Yesmail Interactive and Gleanster emphasizes the role of market research in analyzing customer data and translating information into successful campaigns. While marketers said they are confident in how to best interact with their customer base, the survey data shows that they can improve their performance using market research.
Survey reveals marketers lack deep understanding of customers
The survey of 100 senior-level marketers for both online and offline indicates that mid- to large-sized companies do not have the data or tools necessary to build close customer relationships beyond simply giving them promotions or deals. In the report titled, "Customer Lifecycle Engagement: Imperatives for Midsize-to-Large Companies", Yesmail Interactive in cooperation with analyst firm Gleanster revealed 80 percent of B2C companies do not understand their consumers in depth besides their basic demographics and purchase history.
While 53 percent of marketers said they have a good grasp of customer purchase history and 42 percent said they understand gender and ages, a limited number of marketers followed data related to consumer relationships such as household composition.
"Brands that don't get to know their customers intimately and drive the value of the relationship won't survive," said Michael Fisher, president of Yesmail Interactive. "If brands are not relevant at scale, their customers will find another brand that is."
Teradata research reveals shift toward more data collection
In another survey by analytics company Teradata, marketers are shown to move towards data collecting tools and analysis techniques to learn more about consumers. Teradata's "Data-Driven Marketing Survey" reports almost 50 percent of marketers say data is underused by their company while 10 percent said they use the data they have. A growing number of marketers are planning to incorporate data analysis, with 71 percent of respondents saying they will "implement a big data analytics solution" by 2015.
"Marketers are most effective in generating revenue when they are able to put all their data to work to deliver the most relevant offers to consumers," said Darryl McDonald, president of Teradata Applications.
Giving insight on the challenges marketers face, the survey shows 75 percent of respondents have trouble calculating their return on marketing investment due to improper system integration while 65 percent blame interdepartmental silos hinder a comprehensive view of multichannel campaigns. Despite these problems, 42 percent of marketing executives responded saying cross-channel marketing is a "top priority" to develop a customer's experience.