Predictive Analytics: Why Marketers Should Care
This week’s MIMA (Minnesota Interactive Marketing Association) event was at Microsoft, and there were exciting things to share on the impact of big data and what it means for marketers. Jeff Marcoux, CMO Lead for Enterprise Marketing at Microsoft shared his insights on predictive analytics and what it means for modern marketers. I’ve outlined a few key highlights from Jeff’s presentation.
Data Allows for a Customer-Centric Experience
The customer experience is part of the transformation occurring in the marketplace. The appropriate use and interpretation of data is allowing for a customer-centric and personalized marketing approach. Every touch point with marketing starts and ends with the customer.
For example, in the B2B space, marketers establish lead indicators or scoring parameters for every step along the customer journey. There is a different score applied for each webinar participation, white paper download, email sign up, etc. Jeff shared if you are not sure what exactly is the value of each lead, make it up and start with some benchmark.
Customers Want a Personal Experience
The customer journey is part of a decision journey. The customer is not simply a cluster; they are individuals and want to be treated like one. Jeff shared program details with Real Madrid, a professional soccer team based in Madrid. Real Madrid is offering fans an exclusive live stream video content view of games with the option to choose the angle of the game they want to see. The experience is driven by analytics and allows for personalization and real time experiences and optimization.
Too Much Data
Within data, often times marketers get mired by too much information and too many silos. The key is determining how to create a people-centric experience versus a product driven experience. According to Jeff, the Holy Grail within data is prescriptive analytics, which focuses on finding the best course of action in a given situation and is a combination of descriptive and predictive analytics. One example included a call center for Xbox users and how data is used to handle a call. The service rep sees what games the user has purchased and also a score for how loyal the customer is expected to be and then can tailor their conversation and responses accordingly.
Managing Media Budgets More Effectively
Microsoft used data for a large retail client, and based on the information, they outperformed the trade desk saving the client $40 million per year in their SEM spend.
With the proliferation of the Internet of Things, modern marketers need to understand the impact of big data. There will constantly be new sources of data emerging, with some of the most recent include the Apple Watch and Amazon’s Dash. Jeff recommends looking into https://datafinder.com/, a self-serve data tool worth exploring.