If you’re a marketer, then you’re in the business of finding potential customers and delivering solutions to them at the moment they need them.
You know the challenge: how do you find real prospects without wasting your resources chasing non-prospects?
If you were to do this on a one-to-one basis, you would learn all about a person in order to determine whether they will have an inclination to buy your product or service. In other words, you would gather data and analyze it.
Let’s make this personal- imagine, you’re at a bar seeking a potential mate. You size up the crowd and eliminate those who fail a basic test like age. Maybe you like neck tattoos.
You strike up a conversation with someone who seems to be a good fit for you. You discover they are smart and funny. You learn a little about them- where they live, where they are from, what they do for a living, etc.. You get a sense of their personality.
You examine the variables and determine your chances. At this point it’s a preliminary determination. You need more data. You go out a few times. You share some interests and you also notice some potential issues. You check their Facebook page and Twitter account. You ask your friends to find out what they can. Data collection works best cross-platform.
After a few dates you have enough data to begin analysis, at least preliminarily. Do these differences reduce the odds of success or are they just noise? You decide you can get past the musical differences. Then you start to discover new data. Say, they drink too much. You do a bit of regression analysis. That often correlates with financial issues; violence; issues with the law, like DUI; and irresponsibility. That changes the calculus.
Congratulations, you just did data modeling.
In the marketing sphere, data modeling occurs without the date, and thousands of people at a time. As in real life, the more data the better. Ad Genius employs 750 big data variables. Together, they provide a finely-drawn buying persona of each individual prospect.
It’s also more scientific. Math and engineering replace gut feeling. That may explain why data modeling has a better track record than dating.
The science of data modeling creates a prototype that represents the existing customer, and finds the next customer or influencers with high probability. Analyzing the data is key. An integrated marketing-analytics approach provides the most well-rounded results to drive growth.
Says the consulting behemoth McKinsey & Co., “Our review of more than 400 diverse client engagements from the past eight years, across industries and regions, found that an integrated analytics approach can free up some 15 to 20 percent of marketing spending. Worldwide, that equates to as much as $200 billion that can be reinvested by companies or drop straight to the bottom line.”
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8 Key Concepts To Understand Data Modeling
So the quants from Ad Genius have marched into your business and promised to boost your sales with something called data modeling.
You ask for details and the responses spin your head like Linda Blair in The Exorcist. They talk about attribution and predictive models, decision trees and logistic regression.
You feel your brain regressing.
While Fortune 500 companies employ teams of eggheads to accrue, manipulate and analyze Big Data to increase marketing efficiencies, you don’t have to.
I mean, you do have to. You have to use data to reach the right customers.
You just don’t need to know exactly how it all works. You just need to partner with people who do.
Here are the 8 things you do need to know about data modeling:
1. Data is Critical to Marketing
If your company is marketing to target segments you don’t know anything about, it is wasting a lot of money and missing a host of opportunities. Worse, it is paving the way for a competitor to clean your clock. You have to collect information about market segments and act on it or you’re toast in the 21st century business environment.
2. Without Data Modeling, Data is Junk
Data modeling serves the same purpose as the blueprint for construction of a house. It lays out how all the data will be integrated to provide useful information to your marketing operation. Without data modeling, your pile of data is like an encyclopedia that’s not in alphabetical order.
3. Data Modeling is the Organization of Databases
Data modeling is simply the process of organizing disparate pieces of information into one system and then slicing the information in different ways that reveal things about them.
4. Gathering and Analyzing Data is a Top Big Business Priority
A survey found Big Data is the third highest priority for US digital marketers – and that was back in 2015. The scattershot outbound marketing of the 20th century is anachronistic nearly two full decades into the 21st century.
5. It’s Not Just Data. It’s the Right Data
Data is just piles of information. Big piles of bad information are like beautiful shoes that don’t fit: they are of no use. The opportunity to expand insights from gathering voluminous data is there if your marketing team has the right information.
6. Data Can Offer a Panoramic View and a Granular View
Good data well analyzed tells your business about the universe of target audiences and each individual target simultaneously. That puts incredible power in your hands.
7. Simple and Understandable Results
Your data modeling must produce results that your marketing team can understand. The conundrum in data modeling is that the more complex and insightful the modeling, the less comprehensible. Easy to understand modeling tends to supply relatively little audience insight. Make sure your data people can translate.
8. Reap the Benefits
Study after study is demonstrating the value of data modeling. One study found nearly 40% of marketing executives are generating significant business revenues by acting on their data, and another 37% are taking major steps to gather and analyze the information they have.
That leaves about a quarter of businesses at a competitive disadvantage. Don’t be the bottom quartile.
Find out more about how data modeling can help your business by calling Ad Genius at 843-647-6866 or contact us here!