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The Power of Marketing Analytics

Marketing analytics are often under-appreciated and under-supported; this research reinforces their power. 

Some C-level executives are unsure of the benefits gained from their marketing analytics efforts. Frank Germann, Gary L. Lilien, and Arvind Rangaswamy develop a conceptual framework that relates the organizational deployment of marketing analytics to firm performance, and that also identifies the key antecedents of that deployment.

Use of marketing analytics is linked to better firm performance.

Their analysis of a survey of 212 senior executives of Fortune 1000 firms demonstrates that firms attain favorable and apparently sustainable performance outcomes through greater use of marketing analytics. The analysis also reveals important moderators: more intense industry competition and more rapidly changing customer preferences increase the positive impact of the deployment of marketing analytics on firm performance.

On average, a one-unit increase in the degree of deployment (moving a firm at the median or the 50th percentile of deployment to the 65th percentile) on a 1–7 scale is associated with an 8% increase in return on assets. The analysis also demonstrates that support from the top management team, a supportive analytics culture, appropriate data, information technology support, and analytics skills are all necessary for the effective deployment of marketing analytics.

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Performance Implications of Deploying Marketing Analytics by Frank Germann, Gary L. Lilien, and Arvind Rangaswamy, International Journal of Research in Marketing (June 2013)

Related links

Implementing Analytics
Gary L. Lilien (2013) [Conference presentation]

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