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Data excellence is proving to be the critical key to success. With
the advent of desktop econometrics and market response modeling,
companies, especially those with mega budgets, can finally
determine which marketing activities are effective and which are
not. Econometrics examines the relationships over time between
marketing mix variables that are controlled and performance
measures, such as sales or market share, that represent the
outcomes of marketing plans. The relationship among all the
variables is teased out, so that companies can determine the lift
that each marketing activity can attain.
Furthermore, companies can optimize their budgets to determine the
ideal overall dollars as well as line item amounts that will
accomplish goals such as maximizing customer equity, generating
new customers, gaining market share or improving cross selling.
Financial services companies with tons of data are leading the way
in marketing resource management. However, it won’t be long before
all industries are using econometrics and optimization in their
analyses.
The cornerstone of the analysis is data excellence, not just
quality data, but the right data, captured correctly and measured
appropriately. Yet, a number of the Fortune 500 companies with
which we’ve worked have many of the same data issues that inhibit
accurate analysis. Our upcoming webinar is a selection of
recommendations based on the major problems that we’ve
encountered.
Although companies scrub their addressable data to insure
accuracy, most are not committed to data excellence. While data
mining has permeated corporate America, data excellence is
struggling and lagging behind. Data excellence can drive budget
decisions for a competitive advantage. The winners will be
companies with strategic goals aligned with data capture,
comprehensive data protocol and standardized measurement, which
will lead to superb analysis and optimization of the budget.
Gone are the days when CXOs couldn’t figure out which of their
marketing activities were working. Econometrics and optimization
take the guesswork out of the equation and data excellence drives
the process.
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