What’s the connection between marketers, advertisers and statisticians? In today’s world, there’s a clear link between marketers and advertisers. But what if I told you that, in the near future, the statistician may become the marketer’s best friend?
Currently, when marketers want to attract customers, they work with advertising specialists to create a communications strategy that will give their brand or product visibility on different media. The Internet is invariably included in these media – in fact, it is often at the very heart of the campaign.
The facts, plain and simple
Everybody knows that the power of the Web lies in its ability to collect data about the consumers who visit a given website. This includes the client acquisition source, the products they compare and assess, their social networks (via Facebook Connect), what they read, the date they sign up for newsletters, etc.
However, what can marketers really do with all that information? Not a whole lot, unless they are able to process it – and that’s where statisticians come in. Statisticians are sure to play an increasingly important role in companies in coming years.
Predictive modeling and search engine recommendations
Even though the successful business model employed by Amazon, Netflix and TiVo is based primarily on having a highly efficient distribution network, all three of these companies offer consumers targeted product recommendations. But how do they do it? They use predictive modelling to analyze the data that consumers leave on their digital platforms. This data is used to generate customized recommendations for each individual. [Take note: Netflix is offering $1 million to anyone who can improve its predictive modeling by 10%.] In doing so, the company forges a special relationship with customers, hitting much closer to home than any advertising campaign could hope to.
The paradox of choice
As Barry Schwartz describes in his book The Paradox of Choice, offering a vast selection of products doesn’t necessarily help consumers make better choices. Thus, statisticians will be essential to marketers for two main reasons.
First, marketers will soon find themselves in a position in which they need to help consumers visiting their websites – even if the marketing objective falls short of being the next Amazon or Netflix.
Second, statisticians will help marketing specialists with numerous investment decisions, such as creating new products or initiating a media campaign to launch such products. Why? Statisticians will have key information on consumer behaviour that will ultimately help minimize the risks and costs associated with these decisions.
Companies to keep an eye on:
Companies that use predictive modeling:
- Apple Genius
- LiveWire Mobile