We’re almost done drilling through the muck that is The CMO Survey, February 2013 version (multipart series began here). Today we examine the not-CMOs’ meager attempts at business and marketing analytics.
Another interesting question in the semi-annual survey asks for the marketer’s expectation for his or her company’s sales and profits. Revenue-increase projections have been in the neighborhood of 4% the past five surveys, pretty conservative when compared to what we showed you yesterday – that companies will need to grow sales 36% in order to match respondents’ budget expectations.
But much more enlightening are the profit projections. In every case, the “CMOs” forecast an increase in income that is LOWER than the gain in revenues. (A) This doesn’t match the record profit margins companies have been amassing the past couple of years – by slashing costs to the bone, mind you. (B) This is Finance 101, and implies that a business is going down the tubes. CMOs get an “F” for this.
Not to worry…Big Data will come to the rescue, right? Apparently not.
When asked to project their budget allocation to marketing analytics, survey participants said it would grow from 6% today to a measly 10% within the next three years. That’s not very Big. And remember from Part 3 of our series, CMOs said social media would get DOUBLE that allocation. Cart drives horse.
A nice mix of data and social media insight comes from the response to this question: “What social media metrics are you using?” Ten out of fourteen metrics DECLINED, most substantially, from the August 2010 survey to February 2013. Further, since February 2011, marketers’ self-rating on how well social media is integrated with overall marketing hasn’t budged one decimal point.
Even more Faux Big Data. To the question “What percentage of your projects use marketing analytics?” the percentage has FALLEN over the past three surveys. Worse, for the question “To what degree does the use of marketing analytics contribute to your company’s performance?” almost two-thirds of marketers gave a rating no better than neutral. If you were looking for a tutorial on “How To Spot A Meme,” this is it.
Without the basics of finance and marketing analytics, it seems all is lost for Marketing.