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Data Benchmark Study The Freeman 2 2019 FREEMAN DATA BENCHMARK STUDY Introduction 3 I. A Data-Fueled Marketing Mix Emerges for 2019 4 II. Measurement and Analytics: Data Is the DNA of ROI 8 III. Event and Experiential Marketing Emerges as a 12 Leading Brand Data Hub Methodology and About the Respondents 29 About Freeman 32 contents Table of2019 FREEMAN DATA BENCHMARK STUDY 3 Are you ready to join the data revolution? Over the last 12 months, corporate marketers have begun to put a much larger focus on data collecting it, analyzing it, leveraging it, activating it. Data as a tool. Data as a marketing indicator. Data as a measurement operating system. Data as a strategy planner, budget halo, and brand storyteller. As insights become the operating system so many marketing departments are running on, data has emerged as the leading catalyst for information about brands, their customers, and how the two are connected. Yet many companies are still in the early stages of this transformation. To gauge this seismic shift across the marketing landscape, Freeman and Chief Marketer have developed a unique, groundbreaking study The Freeman Data Benchmark Study. This is the first report of its kind ever fielded to gauge the role of data across the entire corporate marketing mix, polling marketers that own and control every marketing silo. We surveyed marketers that work in every marketing discipline, from brand marketing to retail marketing to digital/social marketing to direct marketing, shopper, experiential, and more. The goal: Spotlight the rise of data, uncover how brands are leveraging data across the marketing mix, and learn which different marketing channels are being used as data funnels. The analysis in this report will help marketing executives make more informed decisions and improve their data strategies and approaches. The study received an unprecedented response from brands. More than 650 leading brand marketing executives, representing many of the largest companies in the world, participated. The survey polled marketers across a range of categories, including technology, automotive, medical/pharmaceutical, financial services, consumer products, education, entertainment and media, consumer electronics, consumer packaged goods, beverage, and other important sectors. Freeman and Chief Marketer thank all of the respondents for their invaluable contribution to the study. 2018 Freeman and Chief Marketer / Access Intelligence, LLC. All Rights Reserved. No part of this publication can be copied or disseminated without the permission of Freeman and Chief Marketer / Access Intelligence, LLC.2019 FREEMAN DATA BENCHMARK STUDY 4 Data is the fuel that powers the marketing mix. Nearly all marketers in every industry are focused on more effectively capturing and measuring data to better understand customers and make more informed strategic budget and investment decisions. Data drives or informs an increasing amount of decisions throughout marketing groups and corporations. As the findings throughout the report show, nearly all marketers are serious about data analytics for 2019 and beyond. Dependence on Data: Secure Budgets, Set Strategy, and Impact the Enterprise 98% of marketers use data to secure budget97 % of marketers say using data is important when communicating with C-Levels about marketing programs and results 89% of marketers use data to make strategic decisions Using Data: How Marketers Leverage Data In addition to informing important strategic decisions, over 70% of marketers leverage their data to impact wider marketing and business goals, including database enhancement, informing business intelligence, improving the customer experience, and assisting product development. I. A Data-Fueled Marketing Mix Emerges for 2019 Make important strategic decisions Data for corporate database/ CRM efforts Business intelligence Customer experience enhancement Leads for sales group Product development Competitive analysis Market research 89% 76% 75% 71% 71% 70% 65% 64%5 2019 FREEMAN DATA BENCHMARK STUDY Two-Thirds of Top Corporations Are Increasing Investment in Marketing Data and Analytics for 2019 The powerful impact of data is seen in the finding that 67% of top companies that have previously invested in data and measurement; maintain a separate budget for this area; and are increasing their spend for marketing data, measurement and analytics. The additional third of the industry expects to maintain their investment level going forward. Investment is increasing because marketers are getting better at using their data, and over half of top marketing executives feel theres a long runway for continued improvement. “Data is at the heart of all marketing decisions for us.” “ The data and measurement process always helps with what we want to do next and give the backing for future opportunities.” “(Data analysis) changed our preconception about what to do/not do, going forward.” “ We have been able to forecast and plan for the future using our existing data to make informed decisions and maximize our spend.” “Data leads to closed business.” We heard from respondents on the critical importance of data and how data analytics are driving both strategy and tactics. Corporate Marketers Believe in the Power of Data2019 FREEMAN DATA BENCHMARK STUDY 6 Additional Corporate Marketer Findings The data in this section provides an expanded set of corporate marketer survey findings. Primary Corporate Marketing Objectives Survey Question: What are your primary objectives for your key marketing efforts and campaigns? Not surprisingly, corporate marketers are mainly focused on increasing sales and positively impacting brand awareness. Most all of the other answer options in the table below can be considered secondary, or most important to marketers with a channel-specific focus. The survey was completed by a diverse group of leading marketers in a wide range of industry sectors and product/service categories. Marketers Increase sales 62% Increase/drive brand awareness 60% Drive client/customer relationships 38% Generate new leads 33% Enhance brand perception 34% Drive web traffic 21% Enhance customer product knowledge 21% Drive retail (online and off) traffic 11% Generate buzz/word-of-mouth activity 16% Generate social media activity 15% Maintain corporate image 16% Demo/sample new products 16% Generate content 12% Educate internal teams 11% Educate external teams 9% Generate press/media coverage 10% Other 3%2019 FREEMAN DATA BENCHMARK STUDY 7 Most Important Marketing Data Points Being Collected and Measured Survey Question: What are the top three most important data points you are collecting and measuring? The research data shows there is a wide range of important data points to corporate marketers, and most of these are channel-specific. Still, the top three ranked by brand marketers are website traffic, qualified leads, and overall sales over the product life cycle. Marketers Total number of qualified leads 37% Total overall sales (over product/service life cycle) 31% Website traffic 30% Brand awareness 30% Total number of attendees/visitors/participants 24% Total number of all leads 22% Social media activity, postings 22% Sales directly from various sources, platforms, and partners 20% Brand perception 16% Reach 15% Brand loyalty 14% Customer and audience evaluations and feedback 13% Sales post-event or experience 12% Marketing response rates 12% Planned action changes by customers/prospects 12% Education, content, literature, or information provided/accessed 11% Total gross profit 10% Sales or price quotes/RFPs requested or provided 10% Press coverage, public relations impact 10% Other online activity/buzz or influencer postings 9% Competitive analysis 8% Information requests 7% Number of demonstrations provided 6% Number of individual customer meetings 5% Dwell time (how long attendees stayed) 5% Journey (where they went and what they did) 4% GRPs 2% Other 2%8 2019 FREEMAN DATA BENCHMARK STUDYTop Marketing Objectives Align with the Most Important Data The table below compares top marketing executives primary goals and objectives for their overall marketing strategies with their most important data and measurement metrics. While there is close alignment, there is also room to leverage data even more to both prove and further drive ROI and other success metrics. In fact, some of the gaps in the data below suggest many companies are in the early stages of the data and measurement marketing transformation. Primary Marketing Objectives Senior Marketing Executives Most Important Data Metrics Senior Marketing Executives 1. Increase sales 76% 1. Total sales over product life cycle 44% 2. Increase brand awareness 67% 2. Total number of qualified leads 36% 3. Drive customer relationships 46% 3. Sales from partners, platforms 31% 4. Generate leads 44% 4. Brand awareness 29% 5. Drive web and online traffic 27% 5. Digital marketing impact 20% II. Measurement and Analytics: Data Is the DNA of ROI Total sales over product/ service life cycle Total number of qualified leads Sales directly from partners and other sources/platforms Brand awareness Digital impact, website traffic, social media activity 44% 36% 31% 29% 20% Data and measurement go hand-in-hand with ROI and other program success metrics. Never before have marketers been able to measure the full range of their mix so effectively. The ability to measure in such depth leads to a much better understanding of ROI and other key success metrics. The survey asked CMOs and VPs of marketing to indicate the most important metrics they collect and measure. The top results point directly to the ability of data to show ROI. The top metric is total sales over the product/service life cycle, selected by 44% of senior marketing executives. Leads, sales from partners, brand awareness, and digital marketing impact complete the list of the top five most critical data metrics. The Most Important Data to Senior Marketers2019 FREEMAN DATA BENCHMARK STUDY 9 How Marketing Program Data Is Used Survey Question: How do you use the data and information you capture from your marketing programs? Over half of marketers use their data to inform marketing strategy and planning, and measure overall marketing strategy and goals success. This list of data uses below is diverse and often aligns to the respondents primary marketing channels. Marketers Inform marketing strategy, objectives, and planning 65% To measure overall marketing strategy and goals success 54% Leads for sales team 45% Budget justification 37% ROI tracking 37% Measurement of marketing program 34% Customer experience feedback 32% Brand enhancement/impact assessments 28% Analysis for senior management 25% Integrate the data in our marketing automation or CRM programs 23% Product and brand feedback 22% To calculate sales impact/ROI from events 21% Cost tracking 20% Inform event design 19% Database enhancement 19% Inform event/experiential elements/tactics 19% Inform marketing mix and tactics 18% To calculate cost-per-qualified lead 17% To calculate cost-per-lead 17% Product development 16% To calculate lead pipeline 16% Competitive analysis 16% Event and experience elements feedback 16% Inform future event portfolio selection/investment decisions 14% Leads for partners 14% Opportunities created post-event 13% Content and information impact assessment 8% Education, session tracking and ratings 8% To calculate contribution/payout to total marketing campaign 6% Inform audience development strategy and tactics 6% Other 0% “Data has allowed us to make informed decisions and free up budget to find opportunities that could better impact the business. ” “Data helps in development of marketing plans and new products.” 2019 FREEMAN DATA BENCHMARK STUDY 10 Percentage of Corporations with Strategic Team Member Focused on Marketing Data and Measurement Survey Question: Do you have a strategic person/role in your organization focused on data capture and measurement? Fifty-three percent of marketing groups say they currently have a strategic person/role in their organization focused on data capture and measurement.Marketing Data Capture and Measurement Budget Growth Survey Question: Is your budget for data capture and measurement-related activities increasing, staying the same, or decreasing? Twenty-five percent of marketers say their budget for data capture and measurement-related activities is increasing. Eighteen percent say their group doesnt budget for data and measurement activities. Dont budget for data & measurement 53% 47% 48% 25% 18% 5% Yes No Increasing Staying the same Decreasing “Data provides insight to maximize utilization of marketing funds and sales requirements in target universes.” 2019 FREEMAN DATA BENCHMARK STUDY 11 Biggest Marketing Data Challenges and Pain Points Survey Question: What are the biggest challenges and pain points related to your marketing data capture and management process? The top challenge for marketers is analyzing the data effectively, which was selected by 46% of respondents. This is important, as nearly half of marketers feel they may be missing out on key insights which would help their programs be more effective. This is followed by cost and budget constraints, as well as the issue of data quality and completeness. Marketers Analyzing the data effectively 46% Cost/budget restraints 41% Time/resources required to work with the data and information 37% Data quality, completeness 37% Availability of data/right data 34% Determining what to measure 30% Relevancy of event metrics/KPIs to overall marketing objectives 28% Implementing findings 23% Tracking and compiling data capture information over time 23% Comparability of results from different channels, parts of marketing mix, and media 21% Data integration into our internal systems 20% Privacy issues 15% Acceptance of results by management 10% Other 1%12 2019 FREEMAN DATA BENCHMARK STUDY Across all marketing channels and marketing mix silos, event and experiential marketing stands out significantly as an effective sector for data collection, generation, and influence. The study shows events provide a “wider and deeper” range of data and metrics than other channels. Event marketers are measuring all of the metrics and areas that are most important to brand marketers. In fact, overall, a higher percentage of event marketers are measuring more key marketing metrics and collecting more data than brand marketers across other channels. No other marketing channel provides the opportunity to measure nearly the full spectrum of metrics and key customer and consumer interactions. Data Points: Event and Brand Marketer Comparison The chart below compares what event marketers and brand marketers typically collect a
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