“Its actually quite a serious point. Why can't these large organisations make better use of the data they have? Why don't they utilise consultants to sort out their data? How much could they save!
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I'll tell you why Steve.....because they use traditional marketers and not data/online marketers. This is not saying traditional marketers are bad at their jobs, far from it, but their skill set does not lend well to data marketing.
These companies know that data is essential to their future marketing and gaining as much data as possible is vital but they do not analyse and "drill down" with this data as they should do. Hence they send marketing material or telemarket to the wrong people.
As for how much marketing spend they could save by analysing the data correctly and targeting accordingly - my educated guess (from being in the data industry) would be around 50%! When you think of the amount these companies spend on marketing every year that's millions of pounds they literally waste year on year.
And why don't the powers that be implement changes to stop this waste every year? Because they don't know it's happening. In blue chip companies there are that many levels are layers of management below board level that it becomes impossible to find the "truth" of what is actually happening. Each management level covers their own backs to show how "great" they are (from fear of losing their jobs and prestigious position in that company) before passing a report higher up!
I have seen reports from some UK blue chip companies where the life time value of a user/customer is inflated by over 500% due to "back covering"and data not being analysed correctly. Unbelievable but very true!
Consultants are very rarely brought in because it would highlight an individuals or a department's marketing flaws. It's a dog eat dog world in the blue chip business world I am afraid............ so I guess we will simply have to put up with the annoying phone calls and direct mail for the foreseeable future
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