Marketing + #Science
How to apply advanced algorithms to better segment your list.
( cross-posted at justinhart.biz)
Like the alchemist constantly in pursuit to conjuring gold from thin air, I’m always looking for the latest and greatest in marketing algorithms to make my clients’ life easy. Here’s a quick review of a recent peer-reviewed paper proposing some interesting applications of science to marketing
In December, three authors from Chaoyang University of Technology in Taiwan published a fascinating paper in the Journal of Ambient Intelligence and Humanized Computing entitled: “Marketing segmentation using the particle swarm optimization algorithm: a case study”. (I know! Heady stuff).
In it they use an algorithm proposed in 1995 to describe the optimization of particles in varied trajectories could be applied to list segmentation using parameters from an RFM model.
Translation: as I’ve noted elsewhere your marketing and sales teams only have so much time in this mortal world. If you can identify the best prospects and customers for them to focus on by segmenting marketing lists using deep data criteria?—?revenues and productivity would sore!
Using Particle Swarm Optimization (PSO) the authors demonstrate that you could use a small set of data points on a list and have the prospects check against a “fitness” criteria to identify the ideal list. Usually, your CRM guru would use basic field filtered to create your segmentation. Using advanced algorithms to rank prospects creates a much more sophisticated approach and could potentially uncover gems you might have passed over.
I recall working with a team some years to help identify quality prospecting lists to target. Using a simple Excel probability we found that lists which included a prospect’s middle name had a good quality score. The PSO application is just a bigger badder way to do that.
Any big data gurus out there want to start a company with me on this amazing application of #SCIENCE? :)
Justin Hart is an excutive technology, marketing and sales consultant. He sits at the intersection of marketing and sales, tears up the sidewalk and plumbs the digital depths of your organization to find efficiencies and improvements to seriously impact your bottom line.
Read more at https://justinhart.biz