Magnus thinks that data is more important than ever

How can robust data strategies enhance decision-making, propel marketing strategies, and drive growth?

From developing precise customer profiles to ensuring the effectiveness of AI tools and adapting to evolving privacy regulations, this month’s Magnus thinks highlights the critical roles that data plays across multiple marketing dimensions. Discover why ongoing investment in data integrity and management is essential for both compliance and marketing success.

Danny thinks

In a period when marketing leaders face increasing internal competition for investment and scrutiny of business cases, it's crucial to access and utilise customer data to drive decision-making. By analysing current customer data, organisations can create an ICP (ideal customer profile) and use this to build a TAM (total addressable market) for their GTM strategy. This data-driven approach ensures resources are focused on the highest opportunity growth areas.

It's telling that in the latest CMO survey (shown below), when considering the importance of factors to drive future revenue growth, 'having the right data' ranked fifth after the right talent, operating model, stakeholder alignment, and technology. Is this because CMOs don't see 'data' as part of their remit and shy away from seeing it as a priority? Arguably, at a time when every cost is being scrutinised, being more data-driven is a no-brainer to not only improve effectiveness and efficiency but also to ensure business cases presented to the CFO are based on the current business reality.

Teresa thinks

If you’re in marketing, then you’re probably desperately working out how to leverage AI. Whether it’s to accelerate content creation, provide new product ideas or increase the effectiveness of your marketing ROI, they all depend on the quality of your data. A study by IBM estimates that bad data costs the U.S. economy around $3.1 trillion annually due to mistakes and inaccuracies in data. Clean data ensures higher accuracy in AI, without it, your output will be wrong, leading to bad strategic decisions or untruths that could negatively impact your brand.

So, spend time on the foundations of your AI, your data. Validate accuracy, normalise the formatting and merge sources, identify and treat outliers, consider data enrichment and remember this is not a one time process. It needs continue cleansing, audits and updates.

Charlotte thinks

Following regulatory complications, Google has once again postponed the end of third-party cookies having started to phase them out for 1% of browsing traffic at the start of the year. This delay is crucial for businesses still developing their first-party data capabilities. As third-party cookies are phased out, first-party data (directly sourced from customer interactions) becomes essential. It ensures compliance with privacy laws and provides the accurate insights needed to effectively target and engage customers and prospects. Businesses lacking a robust first-party data strategy risk losing the ability to communicate effectively with their audience. Now is the time to invest in transparent data collection practices and build direct relationships, ensuring that marketing efforts remain effective in a privacy-first world.

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