Marketers flunk the big data test
- 1. Marketers Flunk the Big Data Test by Patrick Spenner and Anna Bird
- 2. Introduction The big-data explosion is driving a shift away from gut-based decision making.
- 3. Introduction 80% 20% Fortune 1000 companies Rely on intution
- 4. On average marketers use data for just 11% of all customer related decisions
- 5. Insight As for the few who do rely on data? Well, for the most part, they’re not using it correctly. Be critical. Question everything. Never assume
- 6. A majority struggle with statistics When we tested marketers’ statistical aptitude with five questions ranging from basic to intermediate It didn’t surprise us that just 5% of marketers own a statistics text book.
- 7. A majority struggle with statistics 44% 50% 6% All questions Wrong All questions right
- 8. People are dangerously distracted by data
- 9. People are dangerously distracted by data The problem is, marketers don’t have the statistical aptitude or judgment required to use data effectively.
- 10. People are dangerously distracted by data In management positions, these people can wreak havoc by creating endless fire drills and preventing anyone from sticking with projects long enough to achieve the best results
- 11. 2 Insight-The best focus on goals and filter out noise
- 12. The best focus on goals and filter out noise The bad news for marketing leaders is that ability to filter out noise is rare (only about 10% of marketers excel here) and hard to teach. The good news is that a well-guided team environment can protect noise chasers from themselves
- 13. Managerial Relevance Their marketers must have qualities like comfort with ambiguity, ability to ask strategic questions based on data, and narrow focus on higher-order goals.
- 14. Managerial Relevance He should teach marketers to put data front and center in their decision making, and sensitize marketers to common data interpretation mistakes
- 15. Managerial Relevance He/she should focus on more important measures such as customer loyalty or lifetime value rather than response-based metrics