The $20 billion question: How data connection drives growth
Being “data driven” is probably on almost every CMO’s top priority list, and for good reason. A recent study of over 4,000 top UK and US brands by M&C Saatchi’s new data-focused agency, Fluency, showed that those that are “data-disconnected” lose out on nearly a whopping $20bn in annual growth. Since we don’t want you to be part of that, we’ll give you the starting point and approach to data fluency: Share of Search.
“Being data-driven is important, but it doesn’t bring as much value if you’re not data fluent,” explains Tim Spencer, Chief Strategy Officer at Fluency. “The difference is about having the right data at the right time. It enables you to move faster and build stronger brand relations with your customers, leading to more growth. That only works if you know how the data connects, how it’s supposed to flow in the customer journey, and on what the end goal is.”
That end goal is getting your brand into the mind of the consumer as early as possible, knowing that it is an increasingly tougher fight to claim that share of mind. The simplest way of knowing whether you’re on the right track is by looking at your Share of Search. If you’re already into people’s mind as an alternative before they even typed in the query, you’re golden! The higher your share of search, the more people have already shortlisted you, the more you will sell and the more market share you will take. Something that was proven by many different studies by our own company, Les Binet, James Hankins and Google.
“From the starting point of Share of Search, we can start breaking down how we got there using other data points that are connected to the various marketing disciplines and tools,” Tim continues. “Ultimately, we’ll get a clear picture of how data needs to flow and make the right decisions at the right time, circling back to our Share of Search that should then increase.”
1% improved fluency is worth millions
According to the study, about 76% of the household brands surveyed on both sides of the Atlantic are currently not in that position and are “data disconnected”. Ironically enough whilst having access to tons of both internal and external data. Meanwhile, there is no lack of marketing metrics applied to this data, all looking at the performance of each element individually. Streamlining that towards one overarching view, though, is something that can show immediate impact. Just by improving data fluency by 1%, companies can improve their annual growth by around $11.3m (£8m) on average.
“Having all those disconnected metrics is like flying a plane by looking at all the flashing knobs, but without a compass,” concludes Tim. “Sure, that can tell you when there is a problem and where, but how do you know if it’s a big problem stopping you from reaching your destination? In order to tie it all together, we need to see how they all contribute to getting us on route and where we need to be: On top of consumers’ minds.”
The Share of Search history tells the future
Mapping out all connections can be tricky. Looking at your Share of Search, with its historic perspective, makes it easier. Look at the moments where there were fluctuations and start there. This will require a bit of “Share of Search Analytics”, meaning you will automatically have to connect other metrics to it to get a better understanding. Once you get those trends, you’ll even be able to start making projections.
Becoming data fluent can be time consuming, especially when you have a day job, but Tim and his teams are happy to help.
If you want to get started and familiarize yourself with Share of Search, you can try MyTelescope.