Why a Marketing Finance Solution is Key for Marketing Analytics
Seeing the whole picture in marketing analytics is key. That’s why implementing a marketing finance solution is so important. Here’s why and some of the aspects to consider.
First of all, it’s important to punch over your weight when it comes to Marketing Performance Management (MPM) requirements. Your solution needs to have the ability to grow in complexity once your marketing and finance organization has adopted new ways of working and want to keep improving their operations. Also, ensure that you go for a best of breed MPM-solution that supports very complex financial structures. Apart from budgeted amounts and how each post connects to all the relevant metadata such as campaign, product, target group, etc., the marketing finance solution also needs to include a follow-up of actual costs. This is especially when you want to work with advanced analytics. Without it, you won’t get the data granularity that is required. In most analytics programs, what is hindering the impact of analytics is data quality. “Shit in – shit out.” It’s impossible to understand how to optimize marketing if you can’t measure how you have spent your marketing. Only doing analytics, getting results, and making changes based on those results isn’t necessarily enough to increase your marketing ROI.
In statistics, there are two aspects that marketers often miss. Reliability and validity. The reliability indicates if the analysis will come to the same conclusion every time. Reliability is most often not an issue for marketing analytics. The validity indicates if the analysis gives you the answer to the actual question that you want to be answered. I.e. do you draw the right conclusions? In marketing, validity is the biggest challenge. Most marketing departments have incomplete data which means that they draw conclusions on analyses that might only see half of the picture. It’s like directing a movie when only having half the manuscript. If the data that your analytics is processing only relates to some of your marketing (often your digital marketing), you will automatically draw incorrect conclusions.