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1

Definition of Marketing

The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large

2

Different Types of Analytics

  • Descriptive Analytics
  • Diagnostic Analytics
  • Predictive Analytics
  • Prescriptive Analytics 

3

Tasks of descriptive analytics

What happened?

  • Correlation on aggregate level
  • Data visualization: Display and summarize data
  • Clustering: Group individuals by similarity
  • Co-occurrence grouping: Find associations based on transactions involving them

4

Task of diagnostic analytics

Why did it happen? 

  • Causation on aggregate level
  • Causal inference: Determining the effect of a larger phenomenon that is part of a larger system: 
  • Modeling/Simulation: Determine the behavior of a system based on a model

5

Tasks of predictive analytics

What will happen?

  • Correlation on individual level
  • Classification
  • Regression
  • Link prediction: Predict connections between data items

6

Tasks of prescriptive analytics 

How can we make it happen?

  • Causation on individual level
  • Uplift modeling: Predict behavior based on action performed
  • Automation: Determine optimal action based on predicted action of individual

7

Definition of marketing analytics

  • A discipline that seeks to find patterns in data
  • to increase actionable knowledge
  • critical to understanding and predicting user behavior and optimizing user experience 
  • to drive sales

8

Four dimensions of data

  • Volume: data at rest
  • Velocity: data in motion
  • Variety: different data types
  • Veractiy: data in doubt

9

The HiPPO

  • Highest paid person opinion.
  • Opinions are often wrong. We should back them up with data.

10

Organizational metrics

In a data-driven organization, metrics and the accompanying data analyses can be used at multiple levels:

  • Goal metrics: reflect what the organization ultimately cares about
  • Driver metrics: more short-term, faster-moving, and more sensitive
  • Guardrail metrics: guard against violated assumptions (protect the business)

11

Importance of aligning goal and driver metrics

  • multiple teams
  • each with their own goal, driver and guardrail metrics
  • must be aligned with the overall company metrics

12

Customer lifetime value (CLV)

  • represents the total amount of money a customer is expected to spend during their lifetime
  • helps to make decisions about how much money to spend on new/existing customers