How can we apply analytical techniques from other sectors in marketing? (Part 3)
Over the month of November Brightblue R&D team have been looking at analytical techniques from other industries and how they can be applied within the Marketing industry.
We will share with you 3 of those techniques that can be used to provide the most amount of value from businesses data.
Part 3: Data Visualisation
Data visualisation is a powerful way to tell a story in a way that words generally can’t. This section will look at interesting visualisation tools that are used by those who are aware of them as opposed to being dominantly used by a particular sector or industry.
Figure X is known as a Correlation Heatmap and allows you to see the correlation each variable has with one another.
This could prove to be really important for those involved with delivering insight through the use of statistical modelling and data. A key problem that individuals within this area of work encounter is a concept known as perfect multicollinearity whereby two or more variables correlate and thus disrupt the reliability of accurate predictions. Through visual inspection, analysts are able to identify which variables causing issues and decide which to include and exclude.
Here are two very interesting types of data visualisation called Joint Plots. They essentially narrate the same story but have both been included to show you the options analysts have in presenting their data based on preference. The best way to think of them are to imagine a simple scatter plot of many datapoints. Now that you have visualised that in your mind, we can proceed with explaining how these graphs work. In that scatterplot you are imagining, we can actually use darker regions to alert the audience that a particular area is more concentrated with data points – and that is simply what these graphs show.
Additionally, next to the chart axis, there are the marginal distributions of the data of interest. This can be extremely helpful if, for instance, you wanted to understand the distribution of Age amongst your customers and in turn, determine whether you have achieved the goal of perhaps activating a younger audience.
Overall, there are many useful analytical techniques that are yet to be widely applied in marketing. The key to marketing is understanding your customers and these techniques mentioned allow just that! Find out out to turn your data into analytical insights here.
Brightblue Consulting are a London based consultancy which help businesses drive incremental profit from their data. We provide predictive analytics that enable clients to make informed decisions based on data and industry knowledge. Through Market Mix Modelling, a strand of Econometrics, Brightblue has a proven track record showing a 30% improvement in marketing Return on Investment for clients’ spend. If you are interested to find out more please contact us through email by clicking here and one of our consultants will get back to you shortly.