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Case Study:
Process Automation / Consumer Marketing Consulting Firm
Driving personalized consumer marketing campaigns using predictive analytics
Leading marketing consultancy applies machine learning to drive significantly more impactful marketing initiatives
Challenge:
How to allocate marketing dollars to achieve maximum ROI
An increasing number of companies demand that brand marketing consulting be based on customer behavior in addition to customer reported behavior via surveys. As a consequence, a large amount of transactional data have to be analyzed, including dynamics data such as historical customers behaviors (eg shopping patterns and frequencies per item) as well as static data (e.g., origin zip code, gender, age group). The information hidden in such rich datasets can only be uncovered using advanced analytics, either supervised (to create predictive models) or unsupervised (to create customer clusters), and subsequently presented in an actionable way in order to drive targeted marketing campaigns.
Solution:
AI-based driver analysis with quantified impacts on brand perception
After a data centralization campaign, Teranalytics worked with the customer to identify several quantified brand perception metrics that could be predicted using machine learning. The rest of the data were used to build AI models that provided the best balance between accuracy, sensitivity, and specificity (measure by the area under the ROC curve). Simpler models gave slightly worse predictions with the advantage of being interpretable, and where used to derive a driver matrix. Each driver was related to a specific customer sentiment, with a precisely quantified impact on the outcome variable. The marketing group from the customer company only had to pick the strongest drivers and determine which marketing campaign to design to activate these levers and improve brand perception.
1. AI models ingesting both survey and transactional customer data
2. Quantified impact of marketing drivers lead to tactical recommendations
3. 360-degree analysis of customer behavior for more personalized marketing campaigns
Results:
Interpretable AI delineates actionable marketing levers, estimated to improve membership renewal by 10%
Teranalytics increased the success of marketing campaigns by creating driver analysis models based on both reported behavior and actual behavior. The models ingest large amount of transactional data (purchase amounts, frequencies, categories, etc), combine them with on-the-ground survey data, and provide intuitive and quantified recommendations as to what marketing levers will have the largest impact on improving brand perception.
Client Feedback:
“For the first time, we thoroughly understand the complex drivers of consumer purchasing behaviors for our clients’ offerings, enabling us to deliver incredibly impactful marketing recommendations.”
– Principal, leading marketing consultancy-
