How to Evaluate Lead Quality With Predictive Analytics

what are predictive analytics

What are predictive analytics? What can they do for your marketing department and when should you consider a predictive analytics software solution?

We excerpted this article from the highlights of an interview with Mick Hollison. During the interview, Trent and Mick discussed predictive analytics and how it works in marketing.

Are you ready to learn a simple process you can use to get the best out of your leads regardless of how high their lead score is?  Read more

How to Use Big Data to Enhance the Client Experience

how to use big data

Feeling overwhelmed by the sheer volume of tools available today to manage your digital marketing? Can’t tell your Big Data from your Cloud Computing?

In this post, we’ll be focusing specifically on Big Data and how you can use it to help manage your business better.

What is Big Data? It sounds intimidating, but it doesn’t have to be. Let’s demystify the term with a simple definition first:

Big Data is comprised of datasets that are too big and complex for standard tools to store and analyze

These large data sets can be comprised of digital sources but can also include traditional methods of data collections. These include transactions (purchasing, payments, etc.) and point of sale or other, more standard, records.  The challenge for organizations is melding all of these data sources into a single view of the customer.

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The 6 Marketing Metrics Your Boss Actually Cares About [Free Guide]

6 key marketing metrics ebookWhile many bosses theoretically understand that a solid marketing team can directly impact your company’s bottom line, 73% of executives don’t believe that marketers are focused enough on results to truly drive incremental customer demand.

If the majority of executives think marketing programs lack credibility, it simply doesn’t make sense to bombard them with metrics that don’t indicate bottom-line impact.

When it comes to marketing metrics that matter to your execs, expect to report on data that deals with the total cost of:

  • Marketing
  • Salaries
  • Overhead
  • Revenue
  • Customer acquisitions.

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Marketing Trends and Predictions For 2014 and Beyond

digital marketing strategies survey results

What does the future of marketing hold? What digital marketing strategies should you focus on over the next 3 to 5 years? How does your company compare in terms of average marketing spending and social media budget allocation?

The CMO Survey, founded in 2008, surveys thousands of top marketers twice a year to look for marketing trends over time. The most recent results, gathered from over 4,500 marketers in February 2014, provide valuable statistical data.

CMO Survey Report Topic Areas

The 2014 survey covers 10 topics:

  1. Marketplace Dynamics
  2. Firm Growth Strategies
  3. Marketing Spending
  4. Financial and Marketing Performance
  5. Social Media
  6. Marketing Jobs
  7. Marketing Organization
  8. Marketing Leadership
  9. Marketing Analytics
  10. The CMO Survey Award for Marketing Excellence

I’ve provided a summary of a couple of the hottest topics below and included a link to the full report so you can read all of the results for yourself.

Marketer Optimism on the Rise

The biggest news to come out of this year’s survey is how much marketer optimism has increased in recent years. In fact, the percentage of Chief Marketing Officers (CMOs) saying they were more optimistic about the economy has quadrupled over the last five years, from only 15 percent up to 54 percent. On a scale from 0 to 100 where 100 is most optimistic, CMOs scored 66.1 in 2014, up from just 47.7 in 2009.

This increased optimism is based on positive perceptions of consumer trends. Surveyed CMOs say they expect to acquire and retain customers at higher levels in the coming year and also expect consumers to focus on higher quality as opposed to lower price.

Increases in Marketing Spending

On average, CMOs reported increased marketing budgets for their companies, with an average spending increase of 6.7 percent last year compared to 2013. Firms typically spend about 11 percent of their overall budget on marketing, according to the survey.

The area of spending showing the largest increase is, not surprisingly, digital marketing. While companies are decreasing the amount they spend on traditional advertising (down 0.1 percent), they increased spending on digital content strategies by an average of 8 percent.

Social media is playing an ever more important part in digital marketing strategy, and CMOs predict they’ll increase the percentage of their overall marketing budget spent on social media by a whopping 144 percent over the next 5 years, up to 18 percent total compared to today’s 7.4 percent.

Rise of Marketing Analytics

Another area being targeted for spending increases is marketing analytics. Companies predict they will increase the overall percentage of their marketing budgets for analytics by 72 percent in the next three years, from 7.1 percent up to 12.2.

Analytics is an area with much room for improvement. Only 36 percent of respondents felt confident that they were collecting and using the best quantitative data to demonstrate the value of marketing spending. These numbers were even worse for social media, where only 16 percent of CMOs believe they have solid quantitative evidence to back up their strategies.

Less than 8 percent of CMOs said they would rate the contribution of analytics to their company’s performance as very high, meaning that analytical data is not helping to drive decisions.

At this point marketing analytics is still a promise that really hasn’t been fulfilled in terms of its effect on the company’s performance. – Professor Christine Moorman, Survey Director

Part of solving this problem is finding the right talent. Nearly 40 percent CMOs added a marketing analytics position to their staff in the past year, but 80 percent said they had extreme difficulty finding the right person for the job. For those companies that did hire a competent analyst, company profit grew at a rate of 4.7 percent, substantially higher than the average reported 2.7 percent.

 

 

Do you agree or disagree with the CMO survey results? How do you see your marketing department changing over the next few years? Share your experience in the comments box below.

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SaaS Metrics – A Guide to Measuring and Improving What Matters

This is a guest post by David Skok. David is a five time serial entrepreneur turned VC, at Matrix Partners

“If you cannot measure it, you cannot improve it” – Lord Kelvin

This article is a comprehensive and detailed look at the key metrics that are needed to understand and optimize a SaaS business. It is a completely updated rewrite of an older post. For this version, I have co-opted two real experts in the field: Ron Gill, (CFO, NetSuite), and Brad Coffey (VP of Strategy, HubSpot), to add expertise, color and commentary from the viewpoint of a public and private SaaS company. My sincere thanks to both of them for their time and input.

SaaS/subscription businesses are more complex than traditional businesses. Traditional business metrics totally fail to capture the key factors that drive SaaS performance. In the SaaS world, there are a few key variables that make a big difference to future results. This post is aimed at helping SaaS executives understand which variables really matter, and how to measure them and act on the results.

The goal of the article is to help you answer the following questions:

  • Is my business financially viable?
  • What is working well, and what needs to be improved?
  • What levers should management focus on to drive the business?
  • Should the CEO hit the accelerator, or the brakes?
  • What is the impact on cash and profit/loss of hitting the accelerator?

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The 3 Key Inbound Marketing Metrics to Track in 2014

Are you looking for a better, more efficient and all around more valuable way to track the growth of your business online? Is your current metrics letting you down when it comes to showing you the true opportunities and threats your business is facing?

Read on to learn about a 3 key marketing metrics that you need to be tracking as you move forward in 2014 and beyond.
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