Insights Gained from Data Mining and Predictive Modeling

Marketing is fruitful ground for data mining, predictive modeling, and optimization. The reason is that the technology enables you to unlock the secrets behind your customer’s characteristics, behaviors, preferences, and attitudes. This customer insight can then be used to do a better job of communicating and offering products and services that better resonates with their needs and wants.

In the current economic environment, it is also important for marketers to be as efficient as possible with their budgets. Optimizing budget allocations to drive increased revenue and profit will deliver better results with the same or reduced amount of expenditure.

The technology can incorporate text, Web, and survey data to develop a more complete and current view of what customer’s are thinking and talking about. In addition, customer buying patterns, product and competitor likes and dislikes, and the influencers in their decision making are all available information through the analysis process.

After the data is gathered, analysis performed, and models provide predictions, you are better able to choose the sales channel that is the best, select the most effective marketing campaign, segment customer more intelligently, and decrease unnecessary and inefficient marketing expenditures.

Models Highlighted in this Section

The following pages provide details on eight of the commonly used applications of the data mining and predictive technologies. These pre-built models are shown for illustrative purposes and are not, by any means, the only models we have built in the marketing arena. Models detailed are:

• Customer Segmentation
• Customer Acquisition and Optimization
• Product Affinity and Cross-Sell
• Customer Retention
• Marketing Mix Optimization
• Media Optimization
• Site Location Optimization
• Spatial Intelligence and Analysis