In response to the article, “Analytics identifies green shoots” (Data Strategy, March 2009), I fully agree with Iain Lovatt (Data Strategy, March 2009) that there is a need to start looking on the brighter side of things, instead of constantly focusing on the negatives.
There has been much discussion in your pages regarding the importance of data in delivering those positives and, while analytics is important, it should be utilised among a suite of data tools.
Compare analytical reports to customer database modelling. Analytics offers both strategic insight on how best to optimise your marketing strategy, as well as actionable insight allowing you to make improvements to your ongoing marketing communication strategies.
Customer database modelling, typically the more cost-effective alternative to full-blown analytics, offers a good way of optimising your customer database by using proven, sophisticated techniques to identify both re-activation and suppression opportunities, ultimately providing the business highly targeted, profitable names and reducing wastage.
Both approaches offer companies of all sizesexcellent opportunities to the canny marketer and need to be weighed up against cost factors.
However, better results can be achieved through analytics by ensuring your database is fully optimised in the first instance. In short, it is a case of walking before you can run.
With budgets for all departments being reduced and a shift in focus towards “more bang for your marketing buck”, a thorough understanding on all available options is not only vital, it will also allow you to make informed decisions on how best to drive your business forward during these turbulent times.