Agencies are expected to have analytics skills but customers don’t want to pay
We generate an unfathomable amount of data every second. Whether it’s social media posts, online transactions, web searches, or industrial sensors, we’re in the midst of a data avalanche. As per the ‘Global Datasphere’, a study by IDC, by 2025, the global data sphere is expected to grow to a staggering 175 zettabytes*. That’s a lot of information, and it’s only getting bigger!
But without a process to make sense of this data, it’s just more noise.
That’s why we need analytics and why agencies are constantly being told they have to be data-driven, but often lack the resources to sell in the additional retainer. Most clients expect agencies to have this capability in-house.
If you’re on this blog, you’re probably one of the 90% who does not have analytics in-house at the agency.
What does it mean to “offer analytics services” anyway?
The process of data analytics involves applying statistical and scientific techniques to data to extract valuable insights, identify trends, and make informed decisions. Periodt.
But what happens most of the time; clients only have enough budget to a) tag for the data and b) (maybe) deliver a dashboard. All that transforming raw data into actionable information falls to the wayside or to phase “never”.
It’s no wonder then that organizations globally are investing heavily in data analytics in-house to drive their strategic decisions. While businesses are staffing up for data analytics, many agencies lag. A study by HubSpot revealed that a mere 5% of agencies listed data analytics among their top three services, while a shocking 44% did not offer it at all. This gap highlights a significant opportunity for agencies to capitalize on. By offering data analytics services, agencies can cater to the increasing demand, stay competitive, and drive their growth.
The Untapped Goldmine – Why Agencies Need Data Analytics
In a digital landscape where data drives decision-making, data analytics becomes more of a necessity than a luxury. However, many agencies, while acknowledging the importance of data, fail to fully harness its potential. They focus on necessary but growth-limiting activities such as data cleanup and implementation. In contrast, the addition of analytics research can pave the way for organic growth.
The growth potential for agencies that can offer data analytics services is immense. 46% of marketers are increasing budget allocation for customer insights and analytics — the second-highest service after the general digital experience.
However, it’s not just about incorporating data analytics into the service offerings; it’s about integrating it with existing services to create a comprehensive solution. Data analytics can complement any creative offering. Whether it’s tracking a campaign’s progress or justifying future investments in website design, data analytics is a powerful tool in an agency’s arsenal.
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Making the Sales Pitch – Selling Data Analytics Services
Selling data analytics services sucks, given the technical nature of the offering and the substantial investment required. For many clients, it’s a ghost. Not as easy to associate value to as for instance, having a website.
With this systematic approach, it is possible to navigate these challenges and pitch effectively to clients.
Step 1: Discover the data landscape.
The first step is to gain a comprehensive understanding of the client’s data analytics needs. This can be achieved by conducting a discovery session. In this session, agencies can delve into what data the client has, how they use it, and what their business requirements, challenges, and pain points are.
Step 2: Clean up the garbage data.
Next, agencies should offer to clean up their clients’ existing analytics implementations. Often, clients have had many agencies, consultants, and employees touching their data collection systems creating a hot mess. It’s often in a state where the data is vast and unstructured, making it challenging to derive insights. By pitching a cleanup project, agencies can address this issue and add value to their services.
Step 3: Skip the dashboard, move straight to research.
Agencies should offer regular statistical analysis rather than just dashboards. While dashboards are helpful knowing if your performance is up or down, they provide exactly zero insights on how to optimize their marketing. Regular statistical analysis can offer deeper insights into what drives conversion rates and how to leverage these insights to drive marketing performance.
Step 4: Pitch new work with real insights
The agency Critical Mass did this the best. Account Managers who expand client relationships perform the best when they bring data. This leads to increased retainers, deeper client trust, and revenue growth for the company. By demonstrating how they can offer more value than in-house resources, agencies can position themselves as experts in analytics and win more business.
Overcoming Obstacles – The Challenges in Selling Data Analytics Services
Selling data analytics services is not without its challenges. The services are not cheap, and finding and hiring talented analysts can be a daunting task. Moreover, data science is still not as widely recognized or used as many other services. Despite these challenges, solutions are available to help agencies.
Automated tools such as Clickvoyant can enable more people, even without technical or statistical training, to derive statistically significant insights from data.
Expand Services with Data Driven, Impossible to Ignore Strategies
In a world where data is king, data analytics is the key to unlocking its power. As an agency, offering data analytics services is more than just a smart business move. It is a necessity to stay competitive and drive growth. With a systematic approach to selling these services and the right tools, agencies can tap into a lucrative market and meet the increasing demand for data analytics.
As the digital landscape continues to evolve, the demand for data analytics will only grow. Agencies that can harness the power of data analytics and offer these services will be the ones leading the pack. So, it’s time to ride the data wave and sail towards a promising future.
References:
- Reinsel, D., Gantz, J., & Rydning, J. (2018). The Digitization of the World: From Edge to Core. IDC. Retrieved from www.idc.com.
- State of Inbound 2015 report by HubSpot. (2015). HubSpot. Retrieved from www.stateofinbound.co
