Modern Marketing Focuses on Actionable Analytics

by Jeanne Roué-Taylor

It would be really hard to overstate the changes happening in marketing as our world is immersed in burgeoning amounts of all types of data. We suddenly have data that allows us to measure marketing performance through platforms that accumulate historical and real-time data from mobile, web and in-store sources like never before in history.

Actionable Analytics

This definitely gives us visibility into how our campaigns performed, but there’s something more urgent happening that not everyone realizes—the need to see the marketing business from a new and powerful perspective. We need to understand the game before it even begins—before the campaign is executed—through actionable models and analytics that tell us what the rules are, where the game takes place, and how to play.

Three Areas of Understanding

The game is decided by three key areas of understanding that are critical to being competitive:

  • A focus on segmentation – Marketing segmentation is becoming more complex and more powerful. In a noisy world, great segmentation is the arbiter of who engages with the right messages at the right time.
  • The power of propensities – There are far more propensities than simply the propensity to spend or act on a particular offer. Marketers need to get to the heart of why customers attrite, act on social media and a host of other behaviors.
  • A culture of test & learn – Measuring the effect of a hypothesis on a segment of the network allows us to understand the impact of rolling campaigns out to a broad audience.

These trends mean that advanced analytics aren’t simply a nice-to-have. They’re a key part of being competitive and also building brand loyalty, customer retention and brand advocacy.

Upcoming Actionable Analytics Webinar

Learn detailed best practices in actionable analytics in our joint webinar with TIBCO Spotfire on Thursday, May 22nd.

You will learn:

  • The types of analytic skills expected of nearly every marketer in today’s digital and big data world
  • Eight key metrics that get to the heart of measuring loyal customers
  • How to most effectively present information visually and dive more deeply for greater insights
  • Which mathematical models have the greatest impact on success
  • How to separate what causes behavior versus just knowing that it correlates
  • What is the difference between an actionable segmentation versus a descriptive segmentation

Click on the link to register today for our May 22nd webinar, Marketing Analytics: What You Need to Know Now.

The Power of Analytics to Drive Loyalty – Part 1: Desires vs. Capabilities in Analytics

TIBCO’s David Rosen recently presented at the Loyalty 360 Engagement Expo on a topic that we at Loyalty Lab find to be undeniably essential in today’s loyalty marketing landscape: the importance of analytics, and the ways in which more comprehensive reporting can grow the success of your loyalty program.

Marketing Analytics

We surveyed over 100 marketers to assess what analytics tools they are currently using; the types of metrics, or dashboards they have; and the capabilities they’re investing in to take their loyalty programs to the next level.

Ultimately, we found that there is a huge gap between the desire to be able to do more complex modeling — from a day-to-day analytics approach to the ability to analyze the success of a specific campaign on a per-customer basis — and the internal capabilities of various marketing organizations.

The survey was broken into three segments. In the first segment, in which we measured the success of loyalty programs, the biggest gap was seen in measuring specific campaigns using rigorous test and control. This refers to the ability to analyze any campaign down to the individual ROI by comparing a group that was subject to the campaign versus a control group of consumers, stores or products that did not participate in the campaign.

The other major gap in measuring success was using tools to measure social buzz and sentiment. This area is obviously ripe for investment over the next few years. Currently, about 40% of marketers are using test and learn from a scientific standpoint to analyze loyalty programs, but 80% of marketers think that everyone should be doing so.

The second segment of the survey measured the gap between the importance and efficacy of dashboards and reporting. Here, the most noticeable gap was in segment migration, or the ability to move profitable customers to higher tiers, as well as retain customers already in high tiers.

The final part of the survey measured the interest in and need for specific data analysis and analytics capabilities. Rosen cites a number of advanced analytics that can be beneficial, but one approach stood out to all of the marketers surveyed as an enormous boon for a loyalty programs: the ability to match members to specific offers, and to optimize these individual offers. As Rosen put it, “Marketers dream to be able to achieve this kind of relevance for the customer.”

In our next post, we will review the three types of segmentation models Rosen suggests deploying to optimize your loyalty program. Hear more from him and see “The Power of Analytics to Drive Loyalty” webinar in its entirety here

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