The need for data literacy
- 26 November 2018
- 1,210 views
New research shows marketing needs to do more to embrace data and digital skills
There are many examples of how using data correctly helps businesses, from improving customer service to launching marketing campaigns that help organisations truly stand out. Airlines for instance now track customer data from check-in, through the flight, to baggage claim and even other connecting flights.
Rohit Deshpande, a professor of marketing at Harvard Business School, has studied Singapore Airlines for over 10 years. The airline recently worked with Accenture to develop an app that can track customer data. Discussing the results from the app Rohit stated: “Let’s say you go from Sydney to Singapore to change flights from Singapore to London. You decide when you’re going to Singapore that instead of drinking your normal gin and tonic, you’re going to ask for a vodka and tonic. They will record that, and when you reboard in Singapore to go on to London, the flight attendant will ask if you will continue with vodka and tonic or go back to gin and tonic. This might seem intrusive, but their feeling is that people want to know that they’re cared for. They want to be recognised with not just customer service but personalised customer service.”
This growing thirst for data and the presence of automation, robotics, artificial intelligence and digital technologies is changing the workplace. In every industry across the globe there has been an explosion in the data available for decision making – marketing is no different. In fact, many would argue that being able to understand data, in particular customer data is now critical to success.
For marketing to be truly successful marketers need to put the customer at the heart of everything, from the initial product or service design right through to delivery and after purchase support, therefore having a clear understanding of customer data at each critical point is a necessity.
Because data is now so important it is often referred to ‘as the new oil’ or ‘the universal language of this fourth industrial revolution’. What is for sure is that the modern marketer needs to be able to ask questions of machines and use data to build knowledge, make decisions and communicate its meaning with board members or stakeholders. The ability to translate data into useable information that can drive and articulate more meaningful campaigns to audiences is a key skill for modern marketers.
The Data Literacy Project
- Inspiring major organizations globally to make data literacy an imperative;
- Creating the most accessible and comprehensive global data literacy educational resource ecosystem;
- Empowering educational institutions globally to place data literacy into the mainstream curriculum.
The project will work with private and public sector organisations, governments and educational institutions to help address the issue of data literacy.
One of the first actions of the group was to measure the effect data literacy has on businesses. To do this, the group created the Data Literacy Index, which ranked companies against Corporate Data Literacy scores allowing literacy levels and corporate performance to be measured.
The findings were startling. The Data Literacy Index discovered:
- Workforce data literacy has a proven correlation with corporate performance. Organisations ranked in the top third of the Data Literacy Index are associated with three to five percent greater enterprise value (market capitalisation)
- Based on the average organisation size of this study ($10.7b enterprise value), enterprises that have higher corporate data literacy scores can have $320-$534 million in higher enterprise value
- Improved corporate data literacy positively impacts other measures of corporate performance as well, including gross margin, Return-on-Assets, Return-on-Equity and Return-on-Sales
The global picture
While the positive relationship between Corporate Data Literacy and corporate performance is consistent across every region and industry the group analyzed, the breakdown provided a clear benchmark for business leaders and marketers alike.
- Europe holds the highest Data Literacy score globally, with the UK, Germany and France among the most mature nations for corporate Data Literacy
- This reflects a greater recognition that European business decision makers have for the value of data. 72 percent affirm that it is “very important”, compared with just 60 percent in Asia and 52 percent in the US. It also appears to positively impact the proportion of decisions that are made using data and encouragement for employees to become comfortable with data
- The Data Literacy scores for the US and APAC regions were slightly lower, but were not statistically different from each other
- Singapore performed exceptionally for its region and is the most data literate nation globally
- The US is experiencing a different situation, with nearly half of business leaders reporting that at least “quite a few” changes have been made to their companies’ use of data – the highest of all regions. However, organizational changes are not matched by investment. US business leaders report lowest levels of both data literacy training (30%) and only 16% report that their companies “significantly encourage” employees to become more comfortable with data.
Research from Qlik, a member of the Data Literacy Project also revealed that just 17% of businesses are encouraging employees to become more confident with data, with only 34% offering any kind of data literacy training. What's more, just 36% of companies said they would pay higher salaries for people with data skills - showing a disparity between clear market requirements and the backing organisations are prepared to give.
The Digital Skills Benchmark
With data literacy clearly such a key factor in business success and the demand from individuals to upskill themselves, it was surprising that when CIM and Target Internet benchmarked nearly 5,000 individuals (4,872) it revealed a significant lack of digital marketing skills among senior marketing professionals.
Marketing directors were shown to have an insufficient working knowledge of the essential skills to be able to effectively oversee digital marketing campaigns. On average, Marketing Directors had lower understanding of data analytics, PPC, SEO and Ecommerce than junior executives with only 1-2 years of marketing experience.
While marketing directors surpassed their teams in general marketing and digital strategy their lack of practical digital skills is a cause for concern in an industry in which digital channels are a growing part of the marketing mix.
- PPC: Directors scored only 29% in the test of their knowledge of PPC, compared with executives (34%), managers (31%) and of department heads (39%).
- Ecommerce: Directors scored only 26% on Ecommerce compared with executives (37%), managers (41%) and department heads (42%).
- Data and analytics: Marketing directors scored only 32% on a test of data and analytics skills compared with 33% by executives, 35% by managers and 42% by department heads.
It’s clear when data literacy is high and digital marketing is delivered professionally, it can secure a valuable competitive advantage. Marketing directors need to take responsibility for upskilling themselves if they are to drive strategic campaigns and bring through the next generation of marketers, it is essential they understand the full suite of marketing tools at their disposal. We have been talking about the challenges of adapting to digital for many years and it is surprising that digital experience across the industry is so low, however it is positive that marketers are looking to do something about it. Our digital training courses and qualifications remain up there as our most popular: CIM alone has upskilled over 400 marketers in digital disciplines in the last twelve months.
Benchmark yourself using CIM and Target Internet’s digital benchmarking test here. Find out more about the Data Literacy Index here. To learn more about the Data Literacy project, visit the website now.Back to all
- 1,210 views