UK companies are wasting more than half of the data they collect through their websites and other online activities, according to research from predictive analytics company SPSS. And most of those that do use the data are analysing it in the most basic way, failing to use it properly for monitoring, feedback and improvement purposes.
SPSS director of WebAnalytics Jonathan Milne says: “Three-quarters of the businesses we talk to use less than half the data they generate from their online activities for their marketing activities, despite spending large amounts on website development.”
Milne warns that companies that want to be true multi-channel marketers must get their online offering right. “A poorly designed or targeted e-mail, for example, might prompt the customer to opt-out from receiving any mailings from you in the future. Every time you e-mail someone, it could be your last chance to use e-mail.”
Companies are also wasting their marketing budget by failing to use predictive analysis to work out which customers are more likely to respond to an offer, and which would have bought the product anyway, Milne believes. “People think e-mail marketing is cost-free – the biggest cost comes from giving up your margin.”