As digital marketers, we rely heavily on dependable data. The measurements of our data impact our bidding decisions, which then determine the performance of our accounts. This is where data maturity becomes integral to our work, but what are the four stages, and why are they so important?
The 4 Stages
At the first stage, ‘Beginner’, you are already measuring basic conversions, such as web leads and call conversions, and bidding towards the target CPA.
You are not investing in a data strategy and are actively giving up competitive advantage to rival companies.
The second stage, ‘Intermediate’, moves towards incorporating offline data, and starting to measure offline conversions with value.
You are fully tracking micro-conversions, such as multi-step forms, and using a target ROAS or Max Conversion Value bid strategy.
In the third stage, ‘Advanced’, you are fully tracking both online and offline conversions, such as offline call conversion actions, which you are importing into Google Ads.
You are able to observe the attribution of a conversion across multiple channels, by linking the offline data to Google Analytics, and you are bidding towards target ROAS.
The fourth and final stage, ‘Pioneer’, involves the full tracking of online and offline conversions with cross-channel attribution in GA4. Micro-conversion values are measured, using floodlights to drive bidding.
Lifetime value is also being measured in Google Cloud Platform (GCP), and machine learning (like AutoML) is being used to predict it. You are bidding towards a CPA that includes LTV.
Why Data Maturity Matters
As seen in the four stages above, the progression of the data we use feeds into our predictive models, which then enables us to focus our efforts on those most likely to convert.
Digitally mature, multi-touchpoint brands experience significant benefits in revenue growth and efficiencies:
(1) a 200% market share growth
(2) average cost savings of 29%
(3) an average revenue increase of 18%
(Boston Consulting Group, ‘The Fast Track to Digital Marketing Maturity, 2021)
And further, according to the Boston Consulting Group, only 9% of brands are taking advantage of this opportunity to realise the full potential of data-driven marketing. These figures demonstrate the continual undervaluation of the importance of investing in data.
Example: Data Maturity for e-Commerce
Generating revenue, a central goal of many e-Commerce businesses, is a journey that can be visualised in the structure below.
The first level is ‘Basic Efficiency’, where an account has Search and Shopping implemented, RSAs and DSAs, automated bidding adoption, and remarketing or intent-based audiences.
We then progress to the next level, ‘Advanced Efficiency With Automation’. The account has 100% value-based bidding, Performance Max campaign(s), RSA high adoption, and affinity, or similar audiences.
The third level, ‘Right Measurement’, uses data-driven attribution, GA4, enhanced conversions, and first-party data.
‘Capture Demand’ has 100% generic, broad-match keywords applied, high depth Performance Max campaigns, a full-funnel audience and flexible bid targets.
The penultimate level, ‘Brand Building’, has Search and Performance Max implemented, in addition to Youtube and Discovery for awareness. There is further first-party data integration, and a highly customised asset and audience strategy has been established.
The sixth and final level, ‘Profit/Lifetime Value’ has bid to profit values and a highly customised lifetime value audience-based strategy. It is a fully automated account with a unified, business objective-based structure.
The Next Steps
If this has inspired you to kickstart your company’s journey to data maturity, start by building a strategic, realistic plan, breaking down the long-term goal into multiple steps of marginal gains.
At DemandMore, we apply quarterly roadmaps which move us forward in key areas of opportunity and outline (1) what we are going to do, (2) what benefit the business can expect, and (3) when it can expect it.
With the right approach, you can realise the full potential of data-driven marketing too, and take your business to new heights.
If you found this useful, check out our other informative blogs!
Alternatively, follow us on our socials to keep up to date with our latest posts!