We recently discussed transformation and cloud computing. Comparatively, companies can succeed in reaching their full potential by using advanced analytics to develop new models to predict the outcome of their marketing activities. These analytics can use the data already available thereby increasing the ROI instead of spending money looking for fresh data. But the problem lies in the fact that almost fifty percent of the marketers do not know how to use this data even though they think that analytics can improve their businesses.
Though many world famous firms have used advanced analytics to leverage their businesses successfully, most of them are yet to develop the awareness of what advanced analytics can do for them. Only knowledge about advanced analytics can give maximum benefits.
What are Advanced Analytics?
Advanced analytics means:
- Defining data as a strategic requirement for predictive models
- Using the latest tools for data mining or the most recent statistical models
- Using iterative execution in multiple stages and with various data sources
Where to focus the advanced analytics…
The fundamental goal of using advanced analytics is to understand customer behavior and the marketing trends required to succeed. The best way to start is to know the key areas such as:
- Market Forecasting – Forecasting the market trend in a declining, stagnant of shrinking market will help in using the market resources to the greatest advantage.
- Quantifying the requirements and motivations of customers – Using advanced analytics to quantify the emotional state of clients can help in understanding their needs.
- Analysis of brand share drivers – Market share gets increased by predicting the customer’s choice of brands.
- Optimizing the price of products – Optimizing profitability, sale volumes and market share is a very useful tool.
- Mix and match modeling for efficiency – Profitability too gets increased by creating models with a combination and match using advanced analytics.
- Customer Dynamics – Marketing and sales can be aligned by considering the cases which give insights into defecting customers, saleable products, and customer management.
What happens next?
Without trying to become experts on advanced analytics, marketers can go forward with some in-depth knowledge of the concept and take actions as required. By using the available data, companies should arrive at a valid conclusion and make decisions accordingly.
Financial rewards with the this shift come faster when advanced analytics are applied as soon as possible. Marketing strategies will remain relevant only when this concept gets implemented by companies.
More information on Luke Lonergan can be found here.