Introduction to Business
Analytics to Marketing
BMBANMML – Business Analytics and Marketing Metrics
At the end of the session, the students shall be able:
• to know the definition and terms of Business Analytics;
• to understand how it is done and its uses;
• to determine the types of business analytics.
What are the basic elements of marketing?
•Market research •Pricing
•Consumer Behavior •Sales Management
•Brand Management •Social Media
•Product Management Marketing
•Marketing Analytics
Types of Marketing Decisions
• Which product/service variant will be customer prefer?
• Which product features do the customer like the most?
• How to predict with a customer will churn?
• How much sales can I expect the next month?
• How should I price my product?
How to solve Marketing Problems?
Decision-making only by experienced,
seasoned marketers and the management.
Democratic decision-making by those who
have the data insights.
cincinnati zoo and botanical garden - Bing images
PROBLEM
Cincinnati Zoo and Botanical Garden
•Generate more budget
•Reduce reliance in tax subsidies
•Increase visitor attendance
SOLUTION
• Used BA to create food service outlets opened only during specific
times of the day when demand is highest (for example keeping ice
cream kiosks open at the last hour) ROI increased to 411% -
specifically $738,212/year)
• Eliminated slow selling products
• Used BA to integrate ticketing system and POS with membership
information and geographical location. It helped predict attendance
and forecasting. The zoo has seen a 4.2% rise in attendance by
targeting potential visitors who live in specific zip codes.
Cincinnati Zoo and Botanical
Garden
• Decisions made was not based on pure
judgment and experience. They rely on
factual data and the ability to manipulate
and analyze data support on their
decisions.
Business Analytics
• Business Analytics is the use of
data, information technology,
statistical analysis, quantitative
methods, and mathematical or
computer-based models to help
managers gain improved insight
about their business operations
and make better fact-based
decisions.
Why is this happening?
Business What if the trend continues?
analytics
answers the
What will happen next?
questions:
What will happen if we change something?
Data is the set of information you have
to work with, the numbers that your
software reports to you.
Metrics are informational. They take that
Business data and apply it to specific areas of your
business.
analytics
terms and Analytics are strategic. They look at all of
definitions that and ask “why is that happening?”
Finally, KPIs ask “How are we doing in
the long term?”
Data
Data are numbers and calculations that report
various activities about your business (such as
purchases).
• Types of data include:
• Number of purchases
• Number of converted customers
• Total sale amounts
• How many people bought X product
Metrics
Types of metrics include:
• A piece of data that measures
how your business is performing Traffic
in various areas. Metrics will
inform the way you approach Conversion rate
your performance. Here’s a look
Bounce rate
at some popular digital
marketing metrics. Cost per lead
Customer lifetime value
Marketing Performance & Profitability (slideshare.net)
Analytics
Analytics are the analysis of metrics meant to help you draw
conclusions. Think of your business strategy as an equation. The
metrics are the individual components of the equation. Analytics is the
act of putting those components together into something meaningful.
Key performance indicators
(KPIs)
• KPIs are measurements that gauge your company’s
performance over time. These are usually compared
to your competitors’ performance as well as your
company’s past performance.
• An easy way to visualize this is to think of a painting.
Your tools are your data, specific areas of the painting
are metrics, and the big picture is analytics. KPIs track
how your painting performs compared to your past
work and to other artists’ works.
Four Types of Business Analytics
Descriptive Analytics Diagnostic analytics
It refers to describing or summarizing the If focuses on past performance to determine
existing data using existing business intelligence what happened and why. The result of the
tools to better understand what is going on or analysis is often an analytic dashboard.
what has happened.
Four Types of Business Analytics
Predictive Analytics Prescriptive Analytics
It focuses on predicting the possible outcome It is a type of predictive analytics that is used to
using statistical models and machine learning recommend one or more courses of action on
techniques analyzing the data.
In summary,
• Descriptive analytics explains what happened.
• Diagnostic analytics explains why happened.
• Predictive analytics forecasts what might happen.
• Prescriptive analytics recommends an action based on the forecast.
NYEAM X. MAMA O. K&D NANAY C.
ANALYTICS
DESCRIPTIVE ANALYTICS LIFE
CYCLE
PREDICTIVE ANALYTICS
OPTIMIZATION
AUTOMATION
Intelligence
A term that was coined in 1958 by an IBM researcher named Hans
Peter Luhn. His software can answer basic questions such as:
• How many units did we sell?
• What products did customers buy?
• How much did they spend?
• How much credit card transactions were completed?
Using BI, we can create rules to flag exceptions automatically. Example,
transactions greater than $10,000 are reported to IRS.
8 Uses or Applications of Business Analytics
Business Analytics in:
• Retail
• Banking
• Food and Beverage Industry
• Transportation
• Human Resource Management
• Entertainment
• E-commerce
• Education
Zara Adding the ‘Fast’ in Fast Fashion
• Zara does not have a fancy strategy or even a budget for marketing. Yet, it is one of the
world’s leading fast fashion retail brands. So, how has Zara established itself as a
frontrunner? The secret lies in making sense of all the data available. While other brands
take a minimum of 2-3 weeks to sketch new designs, Zara is able to sketch, design,
produce, and send all garments to the racks within two weeks.
1. Business • One way Zara approaches big data analytics is by collecting data from Instagram, surveys,
and social media. All of this data is stored in the central nervous system to understand
Analytics in their customers’ fashion sensibility in every market. Then, it is compiled in its data center,
and analysts work 24 hours a day to process data to drive new design releases. By
Retail knowing its customers inside out, Zara can produce fashion that becomes a trend as soon
as it reaches its stores.
2. Business Analytics in Banking
Bank of America A Virtual Step to Serve its Customers
• Using its customer data, Bank of America
identified that most customers visit the bank daily
just to check their transaction histories and get
information about upcoming payments. To help
out customers with such activities, this bank set
up a virtual assistant that helps customers view
transaction histories or details on pending bills.
So, primarily, it uses data to provide quick
answers and save customers' time.
3. Business Analytics In Food
& Beverage Industry
McDonald’s From mass-promotion to mass-
personalization
• McDonald’s has moved on from regular menus
to digital screens, where they have complete
control of how, when, and what they show to
customers. The food and beverage information
displayed on these screens is decided based on
business analysis. This fast-food company
identifies which meals are more relevant, more
timely, and have a considerable customer-
appeal. Plus, it personalizes the on-screen
content to the individual or based on what’s
trending. This data-driven menu and
personalized offers have helped McDonald’s to
hold its position in the market.
4. Business Analytics In Transportation
Uber Using Data to Identify Look-alike Trips
• Uber uses its algorithms to identify rides that start near a
similar pickup point, end near, and are happening around the
same time as another ride. This data enables Uber to cater to
passengers willing to have a similar journey but by paying less.
This is where Ubers Pool feature comes into play. Thanks to
this car-pooling service, Uber can serve many people at once,
ensure its drivers are occupied, and eventually reduce its
overall carbon footprint.
5. Business Analytics in Human Resource
Management
Nissan Identifying Talent Using its USP
• Nissan is a big name in the world of motorsport. To
recruit the new talent, it chose to go to what is known
for doing the best: racing. Through an unconventional
recruiting medium, Nissan decided to hire people
using racing video games. This motorsport company
partnered with Sony to create the GT Academy, an
annual contest designed to find the best gaming
racers. The objective behind this recruitment channel
is to find the best racers and turn them into real-life
racing drivers. Every year thousands of hopeful racers
enter the contest. The winners selected in the past few
years are still racing, proving what a useful recruitment
channel this has been for Nissan.
6. Business Analytics in Entertainment
Netflix Using Data to Increase Watch Time
• With over 148 million streaming subscribers worldwide as of
2018, Netflix is a force to be reckoned with. To stay ahead of its
competitors like Amazon Prime and ensure subscribers don’t
cancel, Netflix needs methods to increase a user’s average time
spent on the platform. For instance, the company knows if each
user watches 15 hours of content each month, they are 75% less
likely to cancel. To ensure users complete this time, Netflix uses
data to enable post-play, which automatically plays the next
episode of a TV show unless the user opts out. This automatic
suggestion does not only encourage users to spend more time
but also helps Netflix understand audience preferences.
Amazon Using Target Marketing to Enhance Customer Satisfaction
• Amazon analyzes what items you purchased previously, your
7. Business online shopping cart and on your wish list, your product reviews
and ratings, and your search history. For example, when you add a
Analytics in E- book to your online shopping cart, similar books purchased by
other customers are also recommended. In this way, Amazon uses
commerce the power of suggestion to encourage you to buy on impulse to
increase its sales and satisfy your shopping experience. The aim is
to always leave you with something more than what you expected.
The University of Alabama Using Predictive Analytics to
Reduce Drop out Rates
8. Business Analytics • Using analytics, this university found that students
in Education who asked for copies of their transcripts are at risk
of leaving the university. This information helps
administrators recognize students who put in such
a request and work towards providing them with
even better academic and campus resources to
ensure they stay.
Top-performing organizations
are three times more likely to
be sophisticated in their use of
analytics than lower
performers and are more likely
to state their use of analytics
differentiates them from their
competitors
References:
• Business Analytics Part 1 - Definition, Uses & Business Intelligence –
YouTube
• Introduction to Business Analytics – YouTube
• Introduction to Business Analytics, Part 1 [BAS 120] – YouTube
• Using Data Analytics To Guide Your Business Strategy | Kajabi
• 8 Uses or Applications of Business Analytics with Examples - ASM
IBMR
Reflection:
