Over the past five years, Data Science and Analytics have transitioned from being exclusive to manufacturing and operations, gaining prominence as top priorities for C-Suite executives across diverse corporations. This shift is underscored by a notable surge, with over 90% of companies now employing Customer Relationship Management systems (CRMs) and 55% of B2B corporations utilizing Marketing Automation Platforms (MAPs).
This blog explores the journey toward “Best-in-Class” status in Sales & Marketing Data Analytics, providing insights into the defining factors, the imperative of attaining this status, and practical steps for implementation.
Data Analytics Takes Center Stage
In the past five years, Data Science and Data Analytics have emerged as top priorities for C-Suite executives in corporations of various sizes. Traditionally, these technologies were primarily adopted by manufacturing and operation groups, with sales and marketing often lagging behind. Recent research indicates a shift, with over 90% of corporations now utilizing Customer Relation Management systems (CRMs) and over 55% of B2B corporations employing Marketing Automation Platforms (MAPs). This surge in tools has thrust sales and marketing into the spotlight, emphasizing the significance of data acquisition, creation, and accumulation.
Sales & Marketing Data Analytics
Analyzing the abundance of available data unveils the potential to comprehend the buyer’s journey within the sales system and the lead’s journey through the marketing system. Connecting these systems provides a holistic understanding of the customer lifecycle, from lead creation to won/loss. Embracing Data Analytics presents a tremendous opportunity for sales and marketing.
One of our customers aptly stated, “Data is the New Bacon.” If you believe in the power of bacon, it’s time to embrace Data Analytics and strive for “Best-in-Class.”
Questions This Blog Post Answers
This blog establishes a sustainable framework for achieving “Best-in-Class” status, leading to superior returns and a competitive edge. To outline this framework, we address fundamental questions:
- What defines “Best-in-Class”?
- Why should one care about being “Best-in-Class”?
- How can “Best-in-Class” be achieved?
What does that this really mean to be “Best-in-Class” in Sales & Marketing Data Analytics?
To establish clarity on this matter, we consulted various online dictionaries and research groups, seeking diverse definitions.
- Business Dictionary: The highest current performance level in an industry.
- Gartner Group: The superior product within a category of hardware or software.
- Aberdeen Group: Those with superior results, typically in the top 20% of the topic being studied.
For this blog, “Best-in-Class” aligns with the Aberdeen Group’s definition, representing companies in the top 20% measured by revenue and profitability growth.
Why should you care about becoming and staying Best-In-Class?
In May 2017, the Aberdeen Group issued a report on Accessible Analytics.
- Companies in the “Best-in-Class” category (top 20%), embracing accessible analytics, achieved significant milestones, with a notable 20% expansion in customer growth and a substantial 15% boost in profits.
- Contrarily, the “Rest-in-Class” companies (remaining 80%) witnessed more conservative outcomes, experiencing a 7% increase in customer growth and a 6% rise in profits.
The compelling case for striving to attain “Best-in-Class” status is unmistakable, showcasing a superior 13% growth in revenue and an improved 8% increase in profits compared to the “Rest-in-Class.” The report unequivocally emphasizes the imperative nature of seizing this opportunity, as failure to do so may relegate your company to the less desirable “Rest-in-Class” category, potentially resulting in a competitive disadvantage.
How do you become “Best-in-Class” in Sales & Marketing Data Analytics?
The journey begins by enhancing your existing systems with Predictive Analytics and Prescriptive Analytics (Optimization). This process guides your company from leveraging data for Hindsight and Insight to utilizing it for business Foresight. Firstly, it involves understanding the potential outcomes for your business if the current course of action is maintained. Secondly, it entails creating an actionable plan to achieve the desired business outcome in the most effective way. This is where Optimization becomes crucial. The amalgamation of these capabilities forms the basis for establishing Predictable and Repeatable Revenue.
As per the Gartner Group, the attainment of Predictive and Prescription Analytics offers the highest value for your company, laying the groundwork to achieve “Best-in-Class” status. However, it comes with the challenge of high complexity. One viable approach is to consider augmenting your existing Customer Relationship Management (CRM) and Marketing Automation Platform (MAP) with a third-party analytics platform.
Armed with a framework for achieving a “Best-in-Class” Data Analytics capability, the next challenge lies in implementing these capabilities. This blog serves as a starting point, with upcoming posts delving into the steps and benefits of deploying a “Best-in-Class” solution for Sales and Marketing.