As technology gets smarter, so do marketers. The amount of information accessible to shape marketing strategies and campaigns makes marketing efforts more effective, targeted, and personalized. 

If data-driven decision making is so impactful, though, then why are some companies lacking in data usage?

At Setup, we regularly conduct Agency Assessments where we interview Agencies and their past and current Clients about an Agency's performance, strengths, and weaknesses. Surprisingly, when the results are presented, Clients tend to comment about a lack of data-driven practices, or a need for more. 

What is the benefit of using data to find solutions?

According to a 2024 report by McKinsey, companies that integrate data-driven marketing strategies into their decision-making process are 23% more likely to achieve above-average growth. Having more information leads to more opportunities, whether you’re looking to boost customer engagement, predict market trends, or measure ROI. Data allows marketing analysts to uncover patterns, predict future trends, and inform strategic marketing moves.

Brands want measurable outcomes, and data-driven strategies provide Agencies the opportunity to demonstrate tangible results, helping to foster long-term partnerships.

So where is the disconnect for Agencies, and what can Brands do to improve it?

1. Lack of Access to Quality Data

If you’re a Client withholding information from your Agency or providing inaccurate or outdated or fragmented data scattered throughout your organization, then the analysis will be ineffective. According to Forrester, 30% of marketing professionals claim poor data quality impacts their ability to deliver effective campaigns. Client-side marketers need to provide accurate data and work alongside their Agencies to inform the strategy. 

2. Client Resistance

Some people like to be more traditional. And while a traditional mindset may help with relationship building between consumers and Clients, when it comes to data analysis, companies need all the information possible. Harvard Business Review reported that 60% of executives cite cultural resistance as a major barrier to becoming data-driven. This hesitation can limit the Agency's ability to fully implement data-based recommendations which could lead to a waste of energy, time, and resources. Clients need to set their partners up for success. 

3. Short Sighted Vision 

Collecting data and analyzing the trends takes time. If a Client wants their Agency to be data-driven, the Client also has to be a partner and give it time. Agencies may be pressured to focus on immediate outcomes when Clients desire short term wins, leaving less room for data-driven approaches that require time to fully analyze and implement which will benefit a long term strategy. 

So if an Agency is not meeting a Client’s expectations, it could be that the Agency doesn't have the tools to figure it out, or it could be that they weren’t given the proper resources and insights necessary to inform their strategy. It takes two to tango. 

Why is it so important for Agencies to focus on data and for Clients to provide the correct information?

Data can streamline processes and deliver more value to Clients. Here is how Brands and Agencies can turn data into actionable marketing strategies:

1. Align on Clear Objectives

Brands should clearly communicate business goals and key performance metrics to their Agency partners. This ensures Agencies have a solid data-driven framework to work from, enhancing campaign effectiveness and fostering alignment from the start.

2. Leverage First-Party Data for Personalization

Brands should share first-party data, such as customer insights and purchase history, with their Agencies. This data enables Agencies to create highly personalized campaigns, meeting the consumer where they are and shaping a positive experience. Tools like predictive analytics can further enhance personalization and targeting strategies. First-party data is also more effective due to the end of third-party cookies and uptick in privacy regulations. 

3. Foster Collaboration Through Real-Time Data

Collaboration between Brands and Agencies is essential for adjusting strategies on the go. By utilizing real-time data, Agencies can quickly optimize campaigns, shift creative directions, and reallocate budgets to maximize ROI and campaign performance.

Data is transforming the relationship between businesses and consumers and Brands and Agencies. By integrating data into every step of the marketing process - from forecasting to segmentation to ROI tracking - Agencies can deliver higher-value campaigns, while Brands can see the direct impact of their marketing investments. Whether you’re on the Agency or Brand side, leveraging data effectively is the key to staying competitive and driving meaningful results. It just requires you to be open, organized, and adaptable.