3 in 4 marketers from around the world report problems or challenges when trying to calculate ROI, finds Teradata [download page] in new survey results. The study, which looks at data-driven marketing opportunities and challenges, finds that most marketers believe that having access to the right data (something respondents are also finding challenging) would help them prove ROI. But troubles integrating and managing data are high on the list of roadblocks to calculating ROI.
The most frequently cited problem (among those identified) by marketers in calculating ROI is connecting marketing activities to specific earnings generated, a challenge cited by 44% of respondents. In fact, twice as many marketers have trouble connecting their activities to earnings generated than to specific spending (22%).
Data analysis and integration also prove problematic. 4 in 10 respondents said their problems calculating ROI stem from the lack of an integrated system to manage the necessary data. 3 in 10 struggle in performing data analysis at the campaign level.
Interestingly, 13% of respondents said they simply do not track marketing spending. 15% don’t measure ROI or otherwise didn’t find the question applicable, and 9% don’t experience any problems.
Which Questions Are Most Difficult to Answer?
With marketers enjoying increased responsibilities today, a number of questions follow them in their enhanced roles.
Besides looking at the different issues faced when calculating ROI, the Teradata study also examined the most challenging questions marketers have to answer in their role.
The top 5 (among the 11 questions identified), were:
- Which marketing initiatives are effective? (39%)
- How will marketing activities support company objectives? (32%)
- How can [marketers] improve the customer experience? (31%)
- Which campaigns are driving higher revenue? (23%)
- Can [marketers] stretch the budget to support more initiatives? (20%).
These are broad issues, to be sure, but there’s an implied understanding that data insights could help answer them.
Notably, few marketers feel challenged by questions about their marketing efficiency. More surprisingly, only 12% said that questions about identifying their most profitable customers are challenging. Various studies (such as this and this) have suggested that marketers are having trouble identifying their best customers.
Respondents seem confident that they’ve figured out social media, too. Only 1 in 10 said they feel challenged by questions about what their social marketing strategy is or should be.
About the Data: The data is based on a global survey of more than 2,200 marketers. All respondents work in the marketing function (or are executives with responsibility for marketing) in companies with annual revenues greater than $100 million. The survey data was collected March through May of 2013.