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Analytics Applications Marketing

Analytics helps address typical marketing challenges. Segmenting customers using clustering algorithms allows understanding different customer groups. Marketing can then target the right segments, design campaigns specific to each segment, and understand what makes loyal customers loyal. Strategic marketing becomes analytics-based, with segmentation, awareness, acquisition, engagement, monetization and retention addressed through a data-driven approach. Analytics provides insights into price sensitivity, effective channels, behaviors that define retention strategy, and new offerings.

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Jayson Mercado
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348 views

Analytics Applications Marketing

Analytics helps address typical marketing challenges. Segmenting customers using clustering algorithms allows understanding different customer groups. Marketing can then target the right segments, design campaigns specific to each segment, and understand what makes loyal customers loyal. Strategic marketing becomes analytics-based, with segmentation, awareness, acquisition, engagement, monetization and retention addressed through a data-driven approach. Analytics provides insights into price sensitivity, effective channels, behaviors that define retention strategy, and new offerings.

Uploaded by

Jayson Mercado
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Applications of Analytics to Marketing

Functions of Marketing
OUTLINE Typical Challenges in Marketing
How Analytics Improves Marketing
Marketing
“…creating, communicating, delivering and exchanging offerings
that have value for customers, partners and society at large.”
- American Marketing Association

Product
or
Service

Understanding what the market needs Providing the right solution


Typical Challenges of Marketing
Product
or
Service

Does not attract customers Easily outdated, cannot keep


Do not know if campaigns up with trends
are effective Advertising costs cannot be
No brand loyalty justified
Pricing is dictated by margins
only, or competitors’
Analytics
is the discovery, interpretation, and communication
of meaningful patterns in data. Especially valuable in
areas rich with recorded information, analytics relies
on the simultaneous application of statistics,
computer programming and operations research to
quantify performance.

From Wikipedia, the free encyclopedia


Lots of data relevant to Marketing!
Inquiries, Standards, Trends, new
complaints, overall Market share, constraints, requirements,
experience, spend pricing, potential boundaries, new market
habits, preferences recognitions behaviors

Customers Competitors Organizations, Everyone else


Regulators, etc
1st Step is To Know your Customers
• Analytics techniques for A B C A C A C B A B
“clustering” divide data
into groups of similar
items called clusters or
segments
Basis for clustering can be the following data points:
• The discovery is Demographics: age, gender, civil status, income,
occupation, etc.
automatic and data- Geographics: province, city/municipality, zip code,
driven: the model is not urban/semi-urban/rural, etc.
Behavior: purchase history, total revenue, total profit,
told how the groups customer lifetime value, etc.
should look ahead of Psychographics: personality profile, attitudes, values, etc.
Channels: through agent, phone, online, app, in-store, etc.
time
Understanding your Customers by Segment

New clients can be


automatically assigned
to a specific client
segment, based on the Customer
defined cluster Lifetime
centers. Value

Time Since
First Purchase
Intelligent Marketing with Analytics
Product
or
Service

Target the right customer Spot trends, forecast considering


segments new factors
Design campaigns based on Correlate successful campaigns
customer segments with sales and other customer KPIs
Understand what makes Find optimal price points per
loyal customers loyal customer segment targeted by
products
Strategic Marketing IS Analytics-based
Segmentation Awareness Acquisition
• Understand who to • Targeted ads, campaigns • Customize acquisition
target, and who to retain by segments strategy by segment
• Identify high value • Allocation of ad spend on
segments most effective channels

Engagement Monetization Retention


• Management of • Determine price • Behaviors per segment
customers by segment sensitivity and elasticity define retention strategy
and not product • New insights define new • Differentiated treatment
• How customers are ancillary offerings based on segment value
reached depend on
segment
Functions of Marketing
OUTLINE Typical Challenges in Marketing
How Analytics Improves Marketing

References: Alarcon, M. (n.d.) Z-Lift Solutions.

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