Analyzing and measuring marketing effectiveness is increasingly becoming the norm for effective CEOs, CMOs and CFOs. In fact, interestingly enough, an increasing number of CFOs are leading marketing effectiveness programs as companies seek to quantify the financial impact of growing marketing budgets that are increasingly fragmented across traditional, digital and social media channels. And marketing is no longer being evaluated in a silo anymore. There is a growing understanding that media interacts with a number of other business drivers and influencers. (more…)
An often overlooked high-value component of continuous, repeatable predictive analytics is the power to leverage on a day-to-day basis the diverse and rich data sets that are collected in order to enable the analytic insights. Generally speaking, in order for analytics to provide accurate predictive capacity the key and relevant data sources must be collected in the most granular manner possible so as to support targetable consumer marketing initiatives. The omission of key variables could potentially lead to the creation of that undesirable and investment diminishing state of “omitted variable bias.” Or in other words, giving credit to some investment component in sales, marketing, pricing or operations that didn’t deserve the credit – which could lead directly to investment in items that don’t actually drive projected ROI levels. The result is that leading analytic companies are increasingly collecting ever larger sets of data to drive enhanced predictability.
Apply the data from analytics to develop metrics and track them to help you drive your brand
And it doesn’t stop there. In order to ensure proper ROI attribution, leading marketing driven companies are collecting data at the lowest and most actionable level in order to identify investment opportunities that represent the highest ROI by brand, consumer segment and geography. High-value consumer segments are identified in ‘marketable geographies or clusters’ where specific marketing activities can be efficiently focused on creating awareness and converting that awareness into customers who have the highest revenue and profit potential for their brands. With the advent of “big data” collection and processing systems data from sales, marketing and media, loyalty programs, operations, macro-economic , brand equity/attitudinal data sets, weather, competition, etc. are being collected in all their rich, insightful and granular detail. The result is the collection and harmonization of many terabytes of data that not only fuel predictive analytics, but also enable the continuous tracking and measurement of key business metrics and trends. Today’s leading companies are not only capable of seeing the future through these type of analytics but are also focused on tracking compliance against the goals and objectives that are derived from the analytics.
Leveraged smartly data and predictive analytic models can produce a “1 + 1 = 3” punch
And so one feeds and enriches the other. Predictive analytics provides companies with the forward looking direction and insights to gain all of the advantages from seeing the future. Collecting and managing the data supports establishing the metrics and driving the compliance necessary to enable advantages derived from being data clairvoyant.