Kicking off our first “Partner of the Month” blog of 2012, we’re excited to chat with Omer Artun, the founder and CEO of Silverpop partner Agilone. Omer holds a Ph.D. from Brown University, where he studied under Nobel Laureate Physicist Leon Cooper on pattern recognition, data mining and complex systems modeling. We asked him a few questions about marketing analytics and how it can maximize your marketing efforts:
What’s the biggest optimization challenge marketers are faced with today?
[caption id="attachment_2928" align="alignright" width="150" caption="Omer Artun, founder and CEO of Agilone "]
It would be logical to expect the biggest hurdles to marketing optimization in a company today to be the need for advanced mathematical expertise or the need for real-time marketing automation to support millions of decisions found daily in a multibrand, multichannel marketing organization. But long before companies bump into these issues, they need a 360-degree view of the customer (integrated online and offline data), a centralized and consistent way to measure marketing results, and a fair way to attribute program response and revenue across multiple channels. The challenges are made more difficult by the fact that the data and measurement infrastructure are typically supported by multiple vendors, none of them talking to each other.
What is “smart data,” and why is it the key to engaging your customers?
Having all the data together is a very important piece for marketers, but making the data “smart” is equally important. Smart data is derivative data or calculations created by using customer, marketing and financial data but it can also include third-party data. Smart data also includes sophisticated models and analysis whose calculations and algorithms can also be used in making marketing decisions.
What does predictive analytics mean, and how can the concept help marketers?
Predictive modeling is a set of statistical procedures designed to predict a set of outcomes based on measured variables, assumptions and inputs. In a broader sense, it includes product recommendations, but for practical purposes, marketers should think about predictive analytics for four key areas:
- Marketing spend effectiveness (how much to spend)
- Targeting (who to target)
- Promotion differentiation (how to differentiate offers)
- Contact strategy (how to contact customers over time)
What are some best practices for connecting with and/or measuring attribution across multichannel marketing campaigns?
Revenue attribution is the hottest topic these days. Proliferation of online media requires reshuffling marketing spend across many more spend categories. Traditional funnel-engineering-type work is good but static, and it doesn’t address a few key issues. The new marketing spend effectiveness paradigm involves understanding causality of relationship between marketing and sales at a transactional level using statistical methods to fractionally attribute. There are five elements at play:
- Order of events: what sequencing (order) of actions lead to sales transactions
- Combined effects: what is the joint effects of marketing touches
- Frequency: how many touches are required to convert a prospect to a buyer
- Time decay: how the effects of marketing and sales decay with time passed
- Effectiveness: what is the relative efficacy of each vehicle (e.g., a banner view is not the same effectiveness as a 52-page catalog)
Agilone's next-generation marketing technology turns your raw data into effective marketing programs. The company’s SaaS-based solution fully integrates data management, marketing intelligence, predictive analytics and campaign management applications. By bringing these functions together into a single suite of applications, marketers can spot key trends in their data and act on them faster and easier than ever. For more information about Agilone, please visit www.agilone.com.
Don't miss Silverpop and Agilone's upcoming Webinar, "Shazam’s Killer 'Revenue App': Combining User Behavior and Email Marketing."