Marketing data can be like a map drawn by an overly confident cartographer. It’s useful but full of rough sketches and guesswork. The truth? There is no such thing as perfect marketing data. Marketing data is more of an approximation yet still remains a critical tool for us to utilize for the best possible marketing decisions. Understanding its limits can help you navigate your decision-making.
Why Is Marketing Data Imperfect?
There are several areas where marketing data can go wrong. One of those is collection glitches where data tools may fail to display all types of user activity, especially when there are multiple touchpoints. A great example of this are Amazon sales estimator tools. Many marketers rely on these, but they can have error rates as high as 50% (source).
Another problem we face is aging data. Trends are shifting faster than ever so a strategy that worked six months ago may no longer be effective. Data that hasn’t been updated to reflect the latest trends can lead you down the wrong path.
Human errors, whether in input or interpretation, can further twist solid numbers into misleading conclusions. A simple typo can turn a valuable metric into an unreliable one and biases by those inputting the data can lead to skewed conclusions.
The Consequences of Flawed Data
Using flawed marketing data will cause your decision-making to be essentially obsolete. Most commonly, wasted budgets are a major consequence. Campaigns aimed at the wrong audience, or if your data shows faulty customer behavior patterns, you will end up spending your resources that won’t generate results.
Businesses also risk losing revenue. Misinterpreting your data can lead you to misjudge your customers, for example, the infamous New Coke failure, where Coca-Cola launched a reformulated version of its classic soda based on inaccurate data (source).
Paralysis by analysis is another issue you may face. You can get bogged down trying to fine-tune every report, but when the data is flawed, all that analysis is just noise. Instead of confidently moving forward with a strategy, you become stuck, unable to take any decisive actions. Or the decisions you do make don’t achieve the results you’re looking for.
How to Address Data Issues
To gain clarity in your data landscape, regular maintenance is crucial. Cleaning up records by removing duplicates, eliminating outdated data, and updating customer profiles to reflect your current information ensures your data is relevant.
Equally important is entering and interpreting your data accurately. Leveraging advanced tools like analytics softwares or automated systems can help catch errors before they grow into major problems.
It’s crucial to set up a data quality framework. This should include processes for handling any discrepancies in data entry or interpretation. This framework should have regular audits, validation checks, and reviews to keep the data clean.
The Role of Estimates in Marketing
Although estimates are unavoidable in marketing, you can still use these insights to make data-backed decisions. It may be imperfect, but it can guide you in the right direction. Instead of chasing unattainable precision, focus on patterns and overarching trends. While no data set can guarantee perfect accuracy, recognizing the shifts in behavior can give you a significant advantage.
Media mix modeling can help refine ad performance by compensating for inherent biases that naturally creep into marketing data. Incrementality testing can help you pinpoint if your campaigns are genuinely driving results or if other factors are at play. Utilizing these different strategies can get you as close to accurate as you can.
A Look to the Future
The future of marketing data does hold promise. AI and machine learning are evolving rapidly, making the detection of errors and correcting those errors more efficient. As AI becomes more adept at analyzing complex data, it will reduce the reliance on manual oversight and minimize human error.
Real-time validation tools are progressing to catch inaccuracies as they happen, reducing marketers’ chances of missteps. This also allows you to adjust strategies on the fly before mistakes can accumulate over time.
Marketing data isn’t gospel; it’s a guide. By accepting its imperfections, tidying up regularly, and focusing on trends over granular details, businesses can still extract meaningful insights. You can still rely on that data to make meaningful decisions by eliminating as many inaccuracies as possible.
Embrace the fact that marketing data is never perfect while understanding that is doesn’t have to be an obstacle. With the proper tools and strategies, you can still rely on the data to make decisions that steer your business in the right direction.
