Principles of Marketing - Chapter 5 - Marketing Analytics

Customer Relationship Management (CRM)

A systematic tracking of consumers’ preferences and behaviors over time to tailor the value proposition as closely as possible to each individual’s unique wants and needs.

one-to-one marketing

Facilitated by CRM, one-to-one marketing allows the organization to customize some aspect of the goods or services it offers to each customer.

touchpoint

Any point of direct interface between customers and a company (online, by phone, or in person).

share of customer

the percentage of a customer’s total spending in a specific product or service category that goes to a particular company, reflecting loyalty and depth of the relationship.

lifetime value of customer (CLV)

Represents how much profit a firm expects to make from a particular customer, including each and every purchase he or she will make from them now and in the future.

customer equity

the total combined customer lifetime values (CLVs) of all of the company's customers

customer prioritization

strategic process of ranking customers based on value, urgency, and needs to optimize resource allocation, enhance satisfaction, and drive business growth.

Big Data

The exponential growth of data—both structured and unstructured—in massive amounts that are hard or impossible to process using traditional database techniques.

web scraping

The process of using computer software to extract large amounts of data from websites.

sentiment analysis

The process of identifying a follower’s attitude (e.g., positive, negative, or neutral) toward a product or brand by assessing the context or emotion of his or her comments.

scanner data

Data derived from items that are scanned at the cash register when you check out with your loyalty card.

data mining

A process in which analysts sift through Big Data (often measured in zettabytes) to identify unique patterns of behavior among different customer groups.

data warehouse

A system to store and process the data that results from data mining.

reality mining

the collection and analysis of machine-sensed environmental data pertaining to human social behavior, with the goal of identifying predictable patterns of behavior.

data broker

an individual or company that specializes in collecting personal data (such as income, ethnicity, political beliefs, or geolocation data) or data about people, mostly from public records but sometimes sourced privately, and selling or licensing such information to third parties for a variety of uses.

structured data

Data that (1) are typically numeric or categorical; (2) can be organized and formatted in a way that is easy for computers to read, organize, and understand; and (3) can be inserted into a database in a seamless fashion.

unstructured data

Nonnumeric information that is typically formatted in a way that is meant for human eyes and not easily understood by computers.

data scientist

An individual who uses skills in mathematics, computer science, and trend analysis to explore multiple, disparate data sources to discover hidden insights that will provide a competitive advantage.

marketing analytics

A group of technologies and processes that enable marketers to collect, measure, analyze, and assess the effectiveness of marketing efforts.

cost-per-click

An online ad purchase in which the cost of the advertisement is charged only each time an individual clicks the advertisement and is directed to the web page that the marketer placed within the advertisement.

cost-per-impression

An online ad purchase in which the cost of the advertisement is charged each time the advertisement shows up on a page that the user views.

cost-per-order

the cost of internet advertising divided by the number of orders.

Search engine optimization (SEO)

A systematic process to ensure that your firm comes up at or near the top of lists of typical search phrases related to your business.

predictive analytics

Use large quantities of data within variables that have identified relationships to more accurately predict specific future outcomes.

marketing metrics

Specific measures that help marketers watch the performance of their marketing campaigns, initiatives, and channels, and when appropriate, serve as a control mechanism.

marketing control

the measurement of the company’s marketing performance in terms of the sales revenue generated, market share captured, and profit earned

click-through rate (CTR)

A metric that indicates the percentage of website users who have decided to click on an advertisement to visit the website or web page associated with it.

Conversion rate

The number of sales leads converted into customers from various channels such as search marketing, personal selling, email marketing, and mobile marketing.

SMART

Specific, Measurable, Achievable, Relevant, Timely