Majority of CMOs struggle to turn data into actionable insight

A new white paper by Merkle has highlighted that 79% of Chief Marketing Officers struggle to use company data effectively, despite businesses continually collecting increasing volumes of information.

The report, titled "Powering Intelligence Through Data: From Collection to Connection," provides insights from global research, marketing and data specialists, and outlines a framework to help organisations shift from passive data collection to leveraging data for actionable intelligence.

The intelligence gap

According to the research, a significant proportion of data within enterprises remains unutilised. The report cites a source noting that 68% of enterprise data goes unused, while 55% of organisational data is still kept in silos. This is contributing to anxiety around information overload. More than 90% of employees feel overwhelmed by the amount of information they are expected to manage.

Kate Amos, Managing Director, Analytics Consulting at Merkle, commented on the findings.

"In today's landscape, 55% of organisational data remains siloed, and nearly 79% of CMOs struggle to use data to anticipate future customer needs. The result is that intelligence - not raw data - will determine who wins in the next era of business," says Kate Amos, Managing Director, Analytics Consulting at Merkle.

Three organisational imperatives

Merkle's research identified three main areas that organisations should focus on to close what it calls the "Intelligence Gap": integration, connection, and culture. Integration requires that intelligence be distributed across teams and functions, eliminating silos and supporting faster, insight-driven decisions. Connection relies on unified intelligence stacks that bring together both structured and unstructured data, allowing easier, predictive planning. The cultural dimension involves embedding an insight-driven mindset throughout the business to encourage collaboration and experimentation.

Five decision-making forces

The white paper, which is based on interviews with CMOs and data analysts, also identifies five forces that drive improved decision-making. The first is "actionable understanding," where data is not just gathered but is applied to inform actions, using tools such as real-time dashboards. The second is "deep awareness," meaning that context matters; for example, 35% of UK consumers say they prefer to buy from brands they feel are aligned with their own values.

Another force is "strategic clarity". The report notes that 79% of CMOs find it difficult to use data for predictive decisions, while customer experience leaders tend to be more forward-thinking in their key performance indicators. "Predictive capability" is highlighted as crucial for understanding customer behaviour and informing product and pricing strategies.

Finally, "competitive edge" is seen in organisations that centralise and use data in decision-making, with the cultural element once again playing a key role. A business can be agile and responsive if intelligence is ingrained across teams and processes.

Role of AI in data transformation

The research also addresses the role of technology, particularly artificial intelligence (AI), in converting raw data into actionable insights. Isabel Palmer, Director for Experian EMS UK Engineering, commented on the benefits of AI in data processing.

"AI can simplify and accelerate the process of transforming data into relevant, high-quality, secure, and accessible assets", says Isabel Palmer, Director for Experian EMS UK Engineering.

Advice for brands

The white paper concludes by underlining what brands could prioritise to gain a business advantage.

"The brands that are currently winning and are setting themselves up for the future are those that don't just gather more data. They collect the right data, and they turn it into connected, predictive, and actionable intelligence. That's what allows them to meet their customer eye-to-eye, seize opportunities before their competitors do, and build long-term growth", concludes Merkle's Kate Amos.

Merkle's research stressed that while vast amounts of data are available to businesses, organisations can achieve practical results only by harnessing intelligence through better processes, technology, and a culture that puts strategic use of information at its core.