Machine Learning, data science, predictive analytics, and MARKETING go hand in hand with each other and can make a big difference together. The three are closely connected together.
The experts are closely concerned about the present and future growth of marketing. They are of the view that all the stated forms of advanced analytics can help create a better future of marketing. To spread the word regarding your services depends on the availability of the data that is related to the consumers and how they respond to the different active marketing campaigns.
Due to the innovative techniques introduced in the world of data, it is inevitable to understand the impact of these growing technologies on marketing. Thus, these terms have revolutionized the concept of data and marketing.
Advanced Analytics and Marketing
Basic marketing analysis means the technique that is used for carrying out the calculations and taking care of the ratios. The common examples of such ratios include
- conversion rate
- cost per acquisition
- cost per click
These metrics added with segmenting traffic sources and filtering customer types help in understanding the relevant data as required.
Basic marketing analysis allows us to find the right answers easily and so it renders helpful insights. These outcomes are sufficient but at the same time, it is essential to remember that some questions are not too easy to answer. Such questions require strong logic for answering. This is not easy by simply eyeballing a graph or going through the pivot table.
Advanced marketing analytics are used by marketers to automate and optimize marketing decisions. Such analytics require Phonexa’s advanced campaign analytics and machine learning models. These are essential mathematical recipes that help in finding out the patterns and the relationship in the marketing.
The main objective of these techniques is to check the future in the light of the past happening. If such a task of future assessment is carried out by humans then there is not just a chance of errors but there is a possibility that it may consume too much time too.
Popular Advanced Marketing Analytics Techniques
Here we are going to tell you about the top-rated marketing techniques that are in wide use:
- Customer Lifetime Value
- Marketing Attribution
- Conversion Prediction
- Anomaly Detection
1. Customer Lifetime Value
If your marketing techniques are not targeting the right audience then it is nothing but a financial burden on your pocket. There are conversion prediction techniques available that you can use to get the list of the best possible clients cum customers.
According to marketers, several customers will not return to you if you are not happy with the product or the services. In the real market, only a few customers stay sincere to you and your brand. Among that little fraction, the number of real champions is even much smaller. It is important to remember that this minority group is the real change-maker and is integral to your growth. According to the Pareto principle or the 80/20 rule, 80 percent of the business value comes from the 20% of customers who are a minority but still a powerful agent.
Once you start using the lifetime value techniques it becomes easier to predict the expected lifetime value of a customer based on the limited time transaction history. After going through the results it becomes possible to reduce the spendings on the customers that are not contributing to any kind of growth. It is equally important in optimizing the acquisition channels and finding ways to reactivate customers that can be helpful.
2. Marketing Attribution
How effective are the marketing campaigns?
How much is needed to make my campaigns more effective?
These are the key questions that keep arising in the mind of the different users. As the market is becoming more complex day by day it is important to take into account the attribution.
There are different types of this technique. The variations may include
- Simple business rules
- Complex calculations
- probabilistic approaches.
The credit is assigned to the various marketing channels depending upon
- Nonavailability of a certain marketing channel
- Impact of the conversion
- The relative importance of each channel
Multi-channel attribution is just the right choice for online businesses where you need to follow the clicks, conversions, and click paths. If you are working with the organization following the traditional model of business then you can check the other alternative of Marketing Mix Modeling (MMM). It is a statistical technique that works on regression analysis.
Clustering helps the marketers to create segments of the prospects and the customers. Under each segment, you can get content, campaigns, and offers. The groups can be created following the special heuristic rules.
Unlike in the past where this process was a reasonable solution, there are several options related to the data in current times. Clustering permits grouping the customers by considering an arbitrary number of customer characteristics. The groups are based on the mathematical distance between the different characteristics. Similar scores bring customers into one single group.
The features to be considered include age, income, spend, time since last purchase, etc. clustering is equally helpful in keywords that can be grouped according to organic ranking, the number of competitors, and opportunity score. The technique can be used for products, campaigns, ads, and so on.
4. Conversion Prediction
If you are using a single digital percentage then conversion prediction cannot be an easy-to-handle task. To have a better success rate it is essential to get all the historical data regarding the user behavior. This past information helps in identifying the future conversion.
After the users that show behavior related to signal high likelihood tend to convert then you can target them conveniently. The same technique can be used to find out about the different factors that may impact the conversion. These factors include gender, location, type of device used, or relevant dimensions of the site and its users.
5. Anomaly Detection
Marketing is an extensive process that requires sufficient volumes of data involved. Display and search campaigns are meant for thousands of programmatic auctions. It includes ad groups and keywords, with respective conversion rates, spends, and ROI.
The changes have to be part of the natural variation. A marketer has to work vigilantly all the time so that they can respond swiftly as they find out the changes.
Anomaly detection makes use of statistics and machine learning. Hence the marketers stay alert about the changing conversion rate, revenue, and traffic deviate. Thus, they can find out what was expected and what is happening. The technique makes use of the statistical time series and so it is easy to find out about the spot seasonal and weekly patterns.
Forecasting is not a unique process. It is in practice in the entire market. As the name indicates it helps in determining the online traffic, conversion, revenue, and other metrics that may impact the decision of the marketers. Forecasting also requires historical trends to determine what is happening and what will happen. Forecasts are not accurate all the time. If the marketers consider the uncertainty factors then forecasting can make a big difference in the lives of marketers and marketing.
Ways to Implement Advanced Marketing Analytics
Every growing business requires better data exploitation for more progress. This can be done by using advanced analytics. Thus, it becomes easier for marketers to achieve their desired goals.
It wasn’t easy in the past to follow advanced marketing analytics if you were not aware of these. There were other alternatives to it including license fees to vendors. It was a great choice only for the tycoons.
The current times have become easier for marketers. They can make use of several tools that can help you make use of the accessible space. Most marketers fear wasting time and resources. Hence, it is very important to develop intuition around these concepts.
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