Companies struggle to find out what makes their customers “tick” while budget constraints make finding the best customers and prospects more difficult. Without a way to manage and utilize the collected customers information effectively, companies are finding themselves prisoners of their data warehouses and databases since data in and of itself has no value. This is where the advanced marketing analytics turn data into action by targeting the right individual with the right offer or promotion with the right message and analytics has become an integral component of the marketing business.
The New Analytic Paradigm
The idea of developing a model for a campaign or program simply cant work in todays environment. To address this, firms have developed few models, which provide knowledge about customers likeness to purchase, expected churn rate, time frame and lifetime value. The mechanism of marketers used in distinguishing advanced information about customers behavior and using this knowledge in all marketing and sales activities is more important. The challenge of providing advanced analytics not only requires a new paradigm, but a renewed focus on the infrastructure and platform requirements that can get the modeler out of the business of fixing data issues on the task at hand; creating accurate predictions of customer behavior.
The Application of this Advanced Knowledge
Marketer can better manage the entire marketing lifecycle from planning to measurement, with advanced knowledge about customers. After new paradigm, a proper platform must be put in place to handle the entire analytical modeling process. All analytical model development, scoring, accuracy checking, performance verification, and integration with marketer toolset need full support of campaign, measurement, ad-hoc and reporting platforms. the analytical capability and integration must be truly automated, saving the modeler over 80% of the time in dealing with data integration and scoring issues and letting the advanced analytic resource focus on providing value by developing analytics that can help support and drive the business.
Best Practices with Advanced Marketing Analytics
Redistribution of contacts from one customer group/segment to another during early marketing planning process of marketing strategy is the most common best practice by using advanced analytics. By adjusting the marketing plans and strategies while early planning process for increase in return on marketing investment by more than 20% with a clear picture of expected results and during execution stage of each program, marketers evaluated results against expected results provisioned by the advanced analytical platform and reallocate contacts while programs are in market based on the evaluation results.
By leveraging the advanced analytical platform, marketers can now optimize offers on inbound channels like customer service and inbound sales and can provide straightforward recommendations to sales or service representative in call centre or at the retail service desk. Optimum use of advanced analytic platform can create lift of over 25% and can provide justification for the marketing platform with in 45 days. These recommendations are often two to three times more likely to be accepted by the customer as a result of the unique combination of the advanced analytic platform and the timing of the offer for customer initiated conversation.