5 min read
Opinions expressed by Entrepreneur contributors are their own.
You’re reading Entrepreneur India, an international franchise of Entrepreneur Media.
Using insights gathered from data to create stories and determine direction is nothing new for today’s marketer. Data is a fantastic foundation on which to start building your story; however, in its raw form, how strong of an account is the data telling? According to a CMO Survey, analytics and intelligence continue to dominate how online sellers rate their marketing knowledge quality. Business intelligence and predictive analytics are the closest measures we have to a crystal ball that shows us how well new strategies and campaigns will perform. Proper analysis and implementation of these resources determine which organizations are winning and making the right decisions regarding their marketing strategies.
The data has reached an astronomical level
There is no shortage of consumer and behavioral data to be used for predicting how your efforts will transpire. Over the past couple of years, nearly all of the world’s data has been collected and created. That is over two quintillion bytes of data that are created by humans every single day. Marketing investments must be justified, as 93% of CMOs claim that they are under more pressure from executives to produce measurable ROIs. Now, more than ever, it is imperative to utilize reliable, predictive analytics to substantiate marketing decisions and strategies. Aside from the obvious benefits, many compelling reasons explain why marketers can’t ignore the importance of data.
Just look at a few of the stats:
- 53 per cent of marketers agree that data-driven marketing produces more relevant communications and allows them to be more customer-centric
- 64 per cent of marketing executives believe that data-driven marketing is imperative to the success of their companies in the competitive global economy, and
- 87 per cent of marketers consider data to be their companies’ most underutilized asset
Any great marketer knows the intrinsic value of data and its role in today’s marketing. However, there is still much to learn about utilizing the data from artificial intelligence and predictive analytics to create insights that tell compelling stories to consumers.
Using predictive analytics to drive your strategy
Less than half of all CMOs use quantitative data to support their strategies and decision-making. By leveraging artificial intelligence, predictive analytics, and machine learning with data, algorithms, and models, we as marketers can communicate more effectively with our audience. Through predictive analytics and business intelligence, CMOs can better understand consumer behavior, optimize their resources and investments, and retain customers—so why are more than half of today’s companies underutilizing this resource? They likely still don’t fully understand the capabilities and resources associated with predictive data analytics.
A few examples regarding how to implement predictive analytics include:
- Audience segmentation through cluster modeling
- Using identification modeling to acquire new customers
- Scoring leads through propensity modeling and predictive scoring
- Using collaborative filtering to recommend advertisements and content
- Using augmented segmentation to personalize experiences
Netflix is a vital example of a marketing