Using Statistics in Data-Driven Marketing

Statistics in Data-Driven Marketing
Statistics in Data-Driven Marketing

Purpose of Data-Driven Marketing

The days of anecdotal evidence in determining what consumers will buy and when they will buy it are over. Marketers are well aware that evidence-based decision making is the critical difference between meaningful returns on investment or a marketing campaign going flat. To that end, data are collected by marketers in a variety of modes for several purposes such as:

• Predicting consumer behavior

• Personalizing the consumer experience

• Targeting consumers for more relevant advertising

Past behavior is typically the most accurate predictor of future behavior. Personalizing the experience means attracting and retaining customers, knowing what they are in the market for at the right time, providing appropriate offers and discounts, and reducing wasteful use of marketing resources.

Types of Analysis in Marketing

A statistician in the marketing field can employ a variety of methods in answering a business problem call. An individual with the right kind of training, found in such programs as an online Master of Science in Applied Statistics, has the capability to perform regressions for predictions on spending behavior, and how to mine for insights in:

• Customer location

• Customer preferences

• Factors that attract customers

• Characteristics of repeat customers

An applied statistician also has the ability to employ network-mapping techniques to discern consumer to brand relationships and create useful measures to determine when marketing firms should adjust their approach.

What About Marketing Creativity?

Statisticians, particularly in marketing, understand that they do not need to be divorced from their creative sides. In fact, marketing has always had a foundation in creativity, and surprisingly, so do analytics. Having the background to learn how to ask the original, even visionary business questions, and employ innovative research designs and analyses to answer them is key.

Statisticians and marketers working together can align the goals of the marketing campaign with the type of information necessary to drive it. Together they can produce the data and determine how to best influence and communicate the insights analysis provides. Ultimately, the data provided by the statistician informs the campaign created by the marketer.

Statisticians and Data-Driven Marketing: The Return on Investment

Per GlobalDMA, 49 percent of marketers rely on data to improve marketing and enhance customer experience. Companies are increasing their budgets for data-driven marketing, as evidence shows that decisions made by way of data, tend to increase revenue and decrease waste.

However, being data-driven presents challenges, primarily technical, and this ROI cannot be realized if the marketing company doesn’t have people who have experience in collecting, managing, analyzing, and presenting data. Big data, in particular, could become nothing more than “Big Heartache,” if the right type of analyst isn’t in place.

As we can see, there is immense scope for growth in this field. Professionals who want to grow in their data science and related careers can opt for an online Statistics degree to improve as they continue to work and gather more experience.

The Need for Statisticians in Data-Driven Marketing

Statisticians in marketing have a solid understanding of the data itself and how to:

• Integrate it between varying devices (such as computers and smartphones)

• How to weed out data “noise”

• Apply appropriate statistical procedures

• Accurately interpret the results

• Present the results in a meaningful and concise way

Even more importantly—the statistician would understand and know how to employ the techniques to answer the driving business question. Such ability means the analyst can discern when the statistics are misapplied—and avoid costly disasters.

With the right training, an individual would understand how to frame the data question to answer the business question. Statisticians in data-driven marketing are highly valued given their ability to determine the best analytical tools to approach problems, define them, and analyze with precision and accuracy. An online Master of Science in Applied Statistics  would provide the in-depth knowledge and skills they need to deliver the results in a manner that decision-makers can understand and use. The rigorous curriculum offered by Michigan Tech covers theoretical and empirical knowledge with a practical approach to applying the same to solve real-world business problems.

Sources:

Why Marketing Analytics Hasn’t Lived Up to Its Promise

Data Science is the Latest In-Demand Skill Set For Marketing

To Regain Consumers’ Trust, Marketers Need Transparent Data Practices

Why Data Driven Marketing Is Important [Infographic]

Three things data-driven marketers do (that others do not)

 

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