Centralizing Marketing Data Management

Recently, the McKinsey Quarterly had an article on whether Executives should choose to centralize or not centralize a company initiative. https://www.mckinseyquarterly.com/To_centralize_or_not_to_centralize_2815. In the article they sight 3 questions leadership should ask itself to make that decision.
1. Is it Mandated by laws or government?
2. Does it add material value to the business?
3. Are the risks low?

Though the first question doesn't really apply in our case, except for consumer data, Questions 2 & 3 must be answered to manage marketing data effectively.

Adding Value
Centralizing marketing insights, consumer insights and marketing analytics data can provide a brand significant improvement in marketing effectiveness and efficiency. Take for example, something as simple as overlaying consumer insights with media insights to understand which media placements a brand can reach its target. This is beyond demographics and moves into real affinities, purchasing behaviors, and attributes that can refine a brand's media investment. In some cases, this improvement can be as high as 20% - 30% in a market. So Yes, marketing data should be centralized.

Low Risks
That is, are the business risks to centralize not disruptive to the lines of business (e.g., brands). Managing marketing data is extremely challenging. Data collection, for example, is the bane of many marketing analysts existence. Typically in mid-sized and large organizations data is disparate across a myriad of technologies, teams and reporting systems. Without the centralization of these data collection efforts, often work is duplicated across multiple brands and insights cannot be gleaned across brands. So Yes, again, marketing data should be centralized.

So we have checked off 2 of 3 McKinsey's hurdles and marketing data should be centralized.

If you like to learn more best practices for mastering marketing data, join us at the Data Management Summit in July in Park City.