How Successful Marketers are Preparing for the Future of Data Analytics

Data analytics techniques have been on the rise for years, helping marketers learn more about their customers and target them with tailored product recommendations and advertisements.

And while its use is undeniably and increasingly beneficial (and necessary),  some experts are saying that data analytics is now bringing with it several risks in security, privacy, regulation and bias. When you throw in the recent coronavirus pandemic and its impact on consumer behavior, the topic is creating a lot of uncertainty for marketing executives. 

Neil Hoyne, chief measurement strategist at Google, says the recent turmoil has led to executives seeking changes in strategy — including those at his own company. 

According to Hoyne, Google plans to soon stop using third-party cookies, which marketers have enjoyed leveraging in recent years to collect highly-detailed information about consumers’ web traffic. He says many companies are already starting to plan for how to compensate for the impending shift. 

“The companies that are going to win are the ones who are using data, not guessing,” he says.

A need for change

Despite the multitude of ways artificial intelligence (AI) and automation can improve customer engagement (and, in turn, sales), the risks that come along with these benefits can’t be ignored and must be addressed, says Kartik Hosanagar, a professor of operations at The Wharton School. 

Take for example how, in 2018, Amazon did away with recruiting software that was found to have a bias against women. Or, how in 2019, the U.S. Department of Housing and Urban Development sued Facebook for violating the Fair Housing Act in regards to who its platform allowed to view housing ads.

Honsanagar attests that “these are not small risks for the companies,” and recommends they take proactive measures to evaluate their data analytics practices for bias.

As long as leaders can carefully and regularly monitor their AI tools to ensure they’re free of bias and inequities, experts agree that data analytics can vastly improve decision-making and even “lead to more equitable outcomes.” 

The Impact of COVID-19

It goes without saying that the pandemic has caused immense disruption for all types of businesses. In terms of data analytics, some techniques have been rendered obsolete due to consumers making drastic changes to their habits and behaviors.

According to Hoyne, the smart move companies can make right now is making a shift from focusing on precision to prediction. That is, instead of thinking about what can be done to acquire more data, managers should ask, “What can we do with the data we already have?”

At the same time, he says there is also a trend of companies becoming less concerned with historical consumer tracking data — mainly because the recent shift in consumer behavior is rendering this information all but irrelevant. Instead, strategic leaders are focusing more on making their data more transparent, reliable, and relevant.

Lastly, Poshmark’s chief data officer, Barkha Saxena, promotes employing a team-oriented mindset around data — one that includes sharing data across all business functions within the organization. She says, “We have the foundation of very centralized, reliable and easy-to-access data [at Poshmark], but then it’s delivered to all the teams. It allows for the data to be accessible to all the business users at the time of the decision.”

Interested in a career in marketing analytics? Click here to learn more about the Master of Management, Marketing Analytics (MMA) program at NC State’s Poole College of Management.

Source: Knowledge@Wharton