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Posts Tagged ‘predictive modeling’

Pitching Predictive Analytics to Executives

DataA recent Information Management article includes a great deal of practical advice for pitching predictive analytics to hesitant executives. But why, when predictive analytics can be such a boon to businesses, are CEOs slow to embrace it?

The greatest concerns many CEOs have about predictive analytics is that the model will be too costly and take too much time to develop. However, one could argue that a good predictive model would pay for itself, either in increased sales or in betterment of business operating procedures.

In order to warm executives up to the idea of incorporating predictive analytics, Information Management’s article suggests:

  • Make your pitch at the conceptual level
  • Estimate ROI and try to show how predictive analytics can compliment other projects and goals
  • Clearly present the model’s goal
  • Clearly present the risks
  • Assemble a quality modeling team

For additional advice see the article on Information Management.

Ready to guide your company into the realm of data mining and predictive analytics? Register for one of The Modeling Agency’s free data mining webinars or jump into the deep end with a comprehensive data mining and predictive analytics training course.

Why Are You Ignoring Your Data?

Data AnalyticsRecently, Forbes published a superb article titled “It’s Your Data, Stupid,” in which they present many concrete examples of how data mining contributed heavily to success in everything from politics to retail. While The Modeling Agency won’t go so far as to call you “stupid” for not engaging in data mining, please do read the Forbes piece and see just how increasingly vital data mining is to businesses and organizations everywhere.

Data mining is the means by which you unlock the hidden riches in your company’s data. On the surface, your data may seem a discombobulated mess. But beneath the surface are relationships and patterns that, when properly mined and used as the basis of predictive modeling, can teach you a tremendous amount about your existing customers and your leads. “If you are not focused on optimal data mining and using all the latest data science tools, you are missing an important success factor,” Forbes declared. TMA agrees.

If you’re seeking additional examples of how data mining helps businesses, see The Modeling Agency’s blog post “Practical Examples of Data Mining.”

Convinced? Ready to learn how to put your data to work for your business? Register for one of TMA’s free data mining and predictive analytics webinars. Or if you’re looking for something more comprehensive, consider an in-depth data analytics training session.

Enhancing PPC Campaigns with Predictive Analytics

Data Analysis GraphBusiness2Community recently published a post detailing a nearly universal use of predictive analytics: making the most of your company’s PPC campaigns.

In a world where search superiority is still vitally important, many businesses run PPC, or pay-per-click, advertisements via Google Adwords. Additionally, PPC campaigns are available on advertising networks, sites and blogs all over the web. Whatever the end goal of a PPC campaign (which is usually sales or, at the very least, leads), the setup of your PPC campaigns can be greatly enhanced by predictive analysis.

Many PPC ads are subjected to some form of testing, like A/B testing, to determine the most effective copy or other factors. However, that form of testing, and the information it provides, is very limited. But predictive analytics allows you to build predictive models from your data that let you hone in your ad campaigns on exactly the person or behavior that will lead to the greatest ROI.

Business2Community cites a case study wherein a university increased their revenue by $1 million thanks to a PPC campaign backed by predictive analysis.  By studying their site visitors and their behavior, they were able to create highly targeted landing pages for their ads.

Read more PPC and data analytics recommendations at the B2C blog.

If you’re ready to learn how to harness predictive analytics for your business, register for one of The Modeling Agency’s free data mining and predictive modeling webinars or in-depth data analytics training courses.

Will Data Mining Be a Savior for Record Labels?

Data Mining and Record LabelsA recent post on The Modeling Agency blog discussed some practical examples of data mining. Now from the headlines comes another example: data mining may equal salvation for struggling record labels.

The Guardian Media Network writer Lucy Fisher explains how record labels are suffering from a lack of CRM, or customer relationship management, and how data mining is the key to developing an essential CRM framework.  She writes:

In the digital world, there’s a need to reach out to millions of music lovers, for whom accessing tracks involves just the click of a button. “There are various social media properties for artists but these don’t represent proper CRM,” he says. “True CRM is where they need to get to. If they don’t own the data and the customer relationship across the various touchpoints, they won’t succeed.”

The acid test, says Uttley, is: do you know the 100,000 biggest fans and do you have their contact details?

Building a CRM through data mining with the amount of data a large record label possesses is no small effort. And restructuring daily operations so that they are data-friendly has proved to be something of a challenge. The music industry is heavily entrenched in gut instinct and decision making based on educated guesswork. Data mining, on the other hand, is a precise science.

But data mining can be used not only to identify brand ambassadors and key influencers, but to form predictive models to estimate future customer behavior. That is, after all, not so far off from the way record labels have traditionally operated – making often major business decisions based on a prediction, however based in intuition, about how customers will react.

The Guardian piece is revealing and intriguing, and worth a read for anyone who is a fan of data science, or just looking to understand data mining through concrete examples of how it can be used in business.

If you think data mining could help your business but you’re not sure where to start, try one of The Modeling Agency’s free webinars. You’ll learn the foundation of successful data mining practices and get your next campaign off on the right foot.

The Difference Between Data and Information

It’s common for people to confuse data with information because the two are closely related, but they are critically different. Your business probably has a great deal of data, but without proper analysis, you may not have much information. As The Modeling Agency’s slogan conveys, many are indeed “data-rich yet information poor”. If this describes you, you are certainly not alone.

Turning Data Into Information

Generally speaking, data is information potential, in a raw and unmanaged state. Depending on the size of your business and your daily operations, you may have a huge amount of data, which without proper organization and analysis, doesn’t tell you much of anything. However, by using data mining and predictive analytics techniques, you can make sense of even large amounts of data, distilling it down to relevant information and actionable insights.

Data vs. Information at Work

For example, a retail store may have a wealth of data in the form of store traffic patterns, sales records and customer communication. Without organization, structure and analysis, all that data tells management nothing useful about their business. But with data mining, management can learn the peak times for certain types of sales, so they are able to tailor and target future promotions and treatments. They can see from store traffic whether or not the store has optimal hours of operation. And records of customer communication can give valuable details that can be used to entice future sales. Data mining gives management the tools to glean actionable information from their mass of data. And predictive models allow CRM systems to anticipate customer behavior and automate business decisions that significantly impact the bottom line.

Ready to Learn from Your Data?

The Modeling Agency can help you gain the necessary understanding and skills to turn your data into information — and that information into informed decisions for your business. Take the first step with one of TMA’s free webinars, or delve into data mining more deeply with one of TMA’s highly popular public training courses.