Predictive Modeling To Better Understand The Customer
Customer information that you may already be collecting can be used to find useful insight through predictive modeling. Now, this doesn’t mean all data: it means relevant data.
When applied properly, predictive modeling can identify marketing opportunities previously unseen, and impact a business far outside the department. It can also serve as a bridge, between departments, that impacts the success of the total organization.
“LinkedIn is your professional identity, so imagine the data we have,” explainsMichael Li, Senior Director, Business Analytics. “We know where you work, where you are, your school, your skills you have and the skills people think you have. We have quantitative information. We also know your net-worth – who you are connected with. When you look at this person you only see their profile, but on our backend we see more. This information is our starting point in defining a problem, then we can build a model.”
Live Nation Senior Vice-President, Digital Sales Jeremy Levine shares, “We have quantitative and behavioral data. Most people have bought a ticket from Ticketmaster, so when we look at the totality of data, we search for what other data we can look at to sell more tickets based on past purchasing tickets. What else can we look at to solidify those models and work that out? One of the real values is that you can see when someone is shelling out $300 for a ticket, there’s a real connection there, a passion. When we get third party data we can really see what these people look like in real life. At the end of the day, it’s a combination of a lot of different data sets, then measuring those predictions to come up with a living, breathing model.”
Jeffrey Thompson, General Manager and Senior Vice-President, Business for RNN TV explains, “First, collecting data allows us to measure. Second, data science predicts what will do well. My background is working on what’s next, or what cannibalizes a business. One thing I learned at Disney is that, ‘there’s always riches in the niches.’ Find what is coming, what you can incubate and grow, and other companies will come to snatch you up. We have so much change in the marketplace; this is the time to come in and explore new business models.”
Based on Incite Summit West, this book examines current thinking from marketing leadership from some of the largest brands. The contributors were senior level and accomplished, but most importantly, that they are all very active in the development and delivery of the work on behalf of their organizations. These speakers are not sitting in the ivory tower, they are leading their troops into battle – and they are winning.