So how many customers can you upsell in your next campaign? How many cancellations can you expect? How can you convert content recommendations into sales? What lifetime value can you expect for each new customer you acquire?
For each one of these questions, there is a model to give you an answer. Even their names give away their functions: “Predictive Response+LTV for Targeted Customer Acquisition”, “Prioritization via Response+LTV+Variety/Rotation for Email Channel”, or the really exciting “Predictive Churn to pre-empt cancellations”. But how many models do you need? And how do you manage the stack of models? The concept sounds neat. The execution can be messy.
Start with a good view
“We’re awash in data, but we are thirsty for knowledge,” said Jeff Tomlin, CMO at Vendasta. Marketers can succumb to “paralysis by analysis”, or fail to ask the right questions. So start from the top: understand the high-level things you need to know that drives the business, Tomlin said.