Tools that are turning data into action

Tools that are turning data into action
SHARE
THIS



Right now, we're in the midst of a data explosion, thanks to advancements in technology and, of course, the internet.

This data deluge is a great opportunity if only the industry unlocks the potential and hidden value of data.

Businesses are teeming with customer data available from an increasing number of sources. So what? Taken as discrete pieces, data points are essentially meaningless without the ability to translate it into actionable insights and intelligence. That’s why customer analytics is so important.

Customer analytics is a customer-centric approach to guiding, driving, managing, and optimising key customer decisions, based on a systematic analysis of the data available on customers and their behaviour. It can translate into a veritable goldmine for targeted marketing campaigns.

There are a number of advanced statistical tools and data analysis techniques that enable in-depth customer analytics and actionable customer intelligence, including predictive analytics (PA), customer lifetime value (CLV) analysis, and mixed market modelling (MMM).

Stop crunching your forehead, and let's take a look at what these tools can do for you.

Predictive analytics

This is primarily used by companies with a strong consumer focus, such as retail and finance.

A form of statistical analysis, PA uncovers relationships between explanatory variables and the predicted variables from past occurrences and patterns. The data is then used to predict future trends of customer behaviours, which is reliable enough to shape decision-making, forecast trends, reduce potential risks and improve business performance.

The key is to have enough quality data to accurately identify and extrapolate patterns. The more a business can predict the future, the better it can make intelligent business decisions. If you can predict short- and long-term behaviour, you can affect short- and long-term behaviour as well.

Customer lifetime value

In marketing, customer lifetime value is the amount of net revenue or profit from a given customer over their entire lifetime engaging with the business, product, or company.

Essentially treating customers as long-term investments, CLV is a critical metric for any customer centric business.

At a micro level, CLV helps companies decide which tactics should be used for each customer segment, recognising that all customers are different in terms of revenue per customer, cost per acquisition, and other metrics. At a macro level, it is the key ingredient in calculating customer equity; the total combined lifetime value of all the company's customers.

However, one of the inherent limitations of CLV is that you simply cannot quantify every aspect of value. For example, with the ever-increasing relevance of social media, it's difficult (but necessary) to capture and quantify a consumer's social influence, whether positive or negative.

Those businesses that are able to measure and maximise the lifetime value of their customers whilst minimising their investments have a distinct competitive advantage over those who do not.

Marketing mix modelling

Most senior executives are being challenged with improving performance (revenue, sales, and profits) within budget constraints, while facing an increasingly fragmented media landscape.  

Given this increased pressure, companies have turned to marketing mix modelling (MMM) and other complex statistical modelling methods.

This advanced statistical analysis technique links multiple internal and external independent marketing variables or inputs – advertising, media delivery and weight levels, promotion, pricing, sales activities, and other significant influencers like competition and market conditions – and explains how these contribute to changes in marketing and sales outcomes.

Once the model is built and validated, the input variables can be manipulated to determine the net effect on a company's revenue, sales, or profits outcomes. MMM can be successful when based on relevant, specific, accurate and clean data.

However, marketers must accept a couple things:

· The data will never be perfect or complete, so the model will not be able to explain or predict 100 percent of all marketing and sales activities. It is useful, though, to gain forward-looking recommendations on how to adjust marketing strategies, plan and allocate budgets, manage channels, create pricing strategies, and produce the highest marketing ROI.

· Marketing success begins and ends with the customer. For businesses to understand their customers on a deeper level, marketers must aggregate and analyse all of their disparate data assets. An integrated customer analytics and data-driven decision management solution, performed in a structured and comprehensive analytics environment, is the key to releasing the power and realising the potential of data – at every point of the customer life cycle.

Carolyn Bollaci (pictured) is regional VP ANZ at DG Mediaminds and George Musi is head of cross-media analytics at DG Mediaminds in the US. 

Please login with linkedin to comment

Latest News

Diversity Case Study Series: OMD
  • Advertising
  • Marketing
  • Media

Diversity Case Study Series: OMD

One need only look at the Cadbury Favourites chocolate selection to know it has nought to do with industry diversity.

by B&T Magazine

B&T Magazine
NOVA Entertainment Partners With World’s Largest Esports Company
  • Marketing
  • Media

NOVA Entertainment Partners With World’s Largest Esports Company

Radio and entertainment company NOVA Entertainment has announced an exclusive strategic partnership with ESL, the world’s largest esports company. This exclusive partnership will see NOVA Entertainment leverage its radio and digital platforms to promote ESL’s flagship event in Australia, IEM Sydney, and the ESL AU & NZ Championships, to the public. In addition, NOVA Entertainment […]

Royal Wedding Coverage Slammed As “Nauseating”, As 4.06m Aussies Tune-In
  • Media

Royal Wedding Coverage Slammed As “Nauseating”, As 4.06m Aussies Tune-In

Royal wedding fans were spoilt for choice on Saturday night with all the broadcasters – Ten aside – giving it extensive coverage. Across Seven, Nine, ABC and SBS some 4,065,000 Australians tuned-in to watch Prince Harry marry the American actress Meghan Markle. It’s been reported that the global TV audience for the nuptials was in excess of two […]

by B&T Magazine

B&T Magazine
Stan Extends Inflight Entertainment Partnership With Qantas
  • Media

Stan Extends Inflight Entertainment Partnership With Qantas

Stan is now giving Qantas customers exclusive access to content and the ability to enjoy a selection of Stan Originals on flights from the beginning of June. The streaming player will showcase its original content of premium drama and comedy on Qantas flights, as well as feature its own channel on the airline’s inflight entertainment. […]

“Advertising Has A Very Strong Hand In Defining Culture”: CHE Proximity’s Chris Howatson
  • Advertising
  • Marketing
  • Media

“Advertising Has A Very Strong Hand In Defining Culture”: CHE Proximity’s Chris Howatson

Start getting excited, because Changing the Ratio is only one week away! This fabulous event will provide you with the tools you need to start making a positive change in your organisation – plus some game-changing ideas about how we can make inclusion and diversity the norm in our industry. Sound good? Grab tickets here before […]

by B&T Magazine

B&T Magazine
Adobe Expands Integration Between Its Analytics & Advertising Clouds
  • Advertising
  • Technology

Adobe Expands Integration Between Its Analytics & Advertising Clouds

Computer software giant Adobe has expanded the integration between Adobe Analytics Cloud and Adobe Advertising Cloud with Advertising Analytics for Paid Search. The new solution enables organisations to understand the efficiency of their search advertising investment by combining offsite advertising intent in context with relevant digital property engagement data within Adobe Analytics. This includes integrations […]

Band-Aid Tops Australian Reader’s Digest List Of Most Trusted Brands
  • Marketing

Band-Aid Tops Australian Reader’s Digest List Of Most Trusted Brands

Australian Reader’s Digest has unveiled its annual list of most trusted brands, with good old Band-Aid topping the list. The results are based on an independently commissioned poll and appear exclusively in Australian Reader’s Digest. Research company Catalyst surveyed a representative sample of more than 2,400 Australians, to identify the brands we trust the most. THE TOP […]

An Apology To Salmat’s Karen Lewis
  • Media

An Apology To Salmat’s Karen Lewis

Whoops! B&T's stuffed-up and this certainly comes with our sincerest apologies for any offence caused.

by B&T Magazine

B&T Magazine
Bohemia Scores Western Sydney University Media Partnership
  • Marketing
  • Media

Bohemia Scores Western Sydney University Media Partnership

Media agency Bohemia, part of the M&C Saatchi Group, has been appointed as the exclusive media partner of Western Sydney University (WSU). The appointment follows a four-way pitch with WSU selecting Bohemia over incumbent Blue 449. Bohemia’s passion for WSU, the agency’s understanding of the Western Sydney market, and how technology partners can future-proof the […]

DDB Sydney Snares M&C Saatchi’s Nick Russo As New Managing Partner
  • Advertising

DDB Sydney Snares M&C Saatchi’s Nick Russo As New Managing Partner

DDB has announced it has snared  M&C Saatchi’s Nick Russo as managing partner on its Volkswagen commercial vehicles account. Russo was at M&C Saatchi for 10 years and formerly group head leading the Lexus business. He has a range of other high-level experience across telcos, FMCG and retail. “The opportunity to work at DDB Sydney on Volkswagen was […]

Honda Marine Unveils New Campaign Via Newly Appointed Agency 10 Feet Tall
  • Advertising
  • Campaigns

Honda Marine Unveils New Campaign Via Newly Appointed Agency 10 Feet Tall

Together with newly appointed creative agency 10 feet tall, Honda Marine has launched a campaign that lets boating enthusiasts know they’re getting more than an engine. The campaign’s central film showcases the many aspects of performance, reliability and engineering that come from Honda’s background in Formula 1, advanced robotics and vehicles, and its influence on […]

Nielsen, Ispsos & The Readership Works Evolve emma Readership Data Offering
  • Media

Nielsen, Ispsos & The Readership Works Evolve emma Readership Data Offering

The Readership Works (TRW), Nielsen and Ipsos have announced a strategic collaboration with Australia’s news media industry to deliver a ‘single source of truth’ in measuring, understanding and reporting Australian consumers’ increasingly fragmented engagement with brands and content. This evolution sees Nielsen now leading the fusion process that brings together accredited readership data, emma (Enhanced […]

Ten Brings Ellen DeGeneres’ Game Show Down Under To Replace Family Feud
  • Media

Ten Brings Ellen DeGeneres’ Game Show Down Under To Replace Family Feud

Network Ten has announced it has commissioned a new family entertainment series which will premiere on Ten and the WIN Network later this year. Game of Games is based on the US show of the same name, which only launched in January this year. The US show is produced by Warner Horizon Unscripted & Alternative […]

m2m Drives Away With $51m Hyundai Media Account
  • Media

m2m Drives Away With $51m Hyundai Media Account

Media agency m2m has been awarded the Hyundai media planning and buying account. The agency, under Omnicom Media group, was up against incumbent Initiative and Havas, with Hyundai’s Innocean Australia handling the pitch process. Speaking to B&T, a Hyundai spokesperson said, “We’d like to thank Initiative for their sterling service over the last 10 years – […]

by B&T Magazine

B&T Magazine
Adland Execs To Be Locked Up
  • Media

Adland Execs To Be Locked Up

Continuing adland's fascination with prison when it comes to charitable causes comes this latest trip to the slammer.

Australian Directors’ Guild Announces Mentorship Winners
  • Campaigns
  • Media

Australian Directors’ Guild Announces Mentorship Winners

Now in its second year, the Australian Directors’ Guild’s (ADG) Commercial & Content Directing Mentorship program announced its next round of eight mentoree recipients. The winners were announced at a special event held last night at FINCH, Sydney and attended by members of the screen and advertising industries. Acclaimed director, and ADG President, Samantha Lang, […]

Eyeota Deep Dives Into Australian Automotive Purchase Behaviour
  • Media

Eyeota Deep Dives Into Australian Automotive Purchase Behaviour

Eyeota, the global leader in audience data, has today released its latest results on automotive purchase intentions in Australia. The results provide a deep dive into what motivates the buyer and segments those into six different personas.

APN Outdoor Joins The AANA
  • Marketing
  • Media

APN Outdoor Joins The AANA

AANA's annual Christmas dinner and dance got a teensy bit more crowded following this announcement this morning.

QMS Introduces ‘The Lonsdale’ To Melbourne
  • Advertising
  • Media

QMS Introduces ‘The Lonsdale’ To Melbourne

Digital outdoor media company QMS Media has turned on a new premium landmark digital billboard situated in the heart of Melbourne’s CBD. Delivering a commanding presence at the major intersection of Lonsdale and Russell Streets, ‘The Lonsdale’ offers extended dwell times to both vehicle and pedestrian traffic, impacting more than 2.2 million contacts per month. […]

Portrait of a woman looking through out the blinds. Office worker looking through window blinds
  • Opinion

The Lurking Brand Threats Facing CMOs

Treading on gardening rakes and possible alien abduction notable omissions from this CMO threats piece.

Opinion

by B&T Magazine

B&T Magazine
Women In Media Profile: Susannah George
  • Media

Women In Media Profile: Susannah George

B&T is delighted to profile Urbanlist supremo Susannah George who, we understand, is not related to George Brandis.

by B&T Magazine

B&T Magazine
Ikon Lands Avis Budget Group Account
  • Advertising
  • Marketing
  • Media

Ikon Lands Avis Budget Group Account

B&T chooses and recommends Avis and John Karandonis shoes. Hang on, that was the end of Sale Of The Century.

by B&T Magazine

B&T Magazine
Principals Appoints New Creative Director For Melbourne
  • Marketing

Principals Appoints New Creative Director For Melbourne

Branding design agency Principals has announced the appointment of Pip Ireland as its Melbourne creative director. Ireland, who has been freelancing with the agency for the past six months, has previously held roles at Designworks in New Zealand and Melbourne as well as Moon Communications in Sydney. Principals executive creative director Simon Wright said: “We’ve […]

Pureprofile Unveils Next-Level Audience Segmentation Offering With RDA Research
  • Media
  • Technology

Pureprofile Unveils Next-Level Audience Segmentation Offering With RDA Research

Global media and technology company Pureprofile has partnered with RDA Research to enable further audience segmentation across its audience profiles. RDA Research’s geoTribes is a unique classification system that rivals traditional geodemographic approaches by grouping consumers into fifteen ‘tribes’ based on their life stage and socio-economic status. Clients are then able to better understand consumer […]