Data can sometimes speak very loudly. The difficulty comes in interpreting what it means. As we become inundated with more and more raw information, the threat of "analysis paralysis" becomes all too real. Despite those pitfalls, there are signs that marketing teams are becoming much more skilled in the use and interpretation of analytics.
This article in Fortune discusses the rapid growth of analytics. Companies are expected to increase their spending by as much as 66% over the next three years. One of the main beneficiaries are companies like Quantifind--a new startup focusing on marketing analytics.
Fronted by longtime marketing executive David Karnstedt, Menlo Park, Calif.-based Quantifind tripled its customer list last year to 30 brands, including beverage makers Pepsi PEP -2.29% and Heineken. Its specialty is sorting social media “signals” and correlating them with sales data. “(Our) platform allows marketers to explore, understand, and change their impact on revenue by serving up the most likely correlations and letting human judgment ultimately discern what to study further and where to take action,” he said.
Mr. Karnstedt goes on to give a demonstration of how their software works:
How does Quantifind’s software work? Without disclosing the name of the customer, Karnstedt offers the example of a quick-serve restaurant that was seeking ways to increase breakfast sales among teenagers. Despite the addition of several menu items catering to that demographic, the company saw very little impact on results.
Using Quantifind analytics, the company dug deeper and discovered a pattern of negative feedback—not from teens, but rather from their mothers. It turns out they didn’t care for the coffee on the restaurant’s menu. “More data also revealed that teens were relying on moms for a ride for breakfast. So the answer to the question ‘How do we sell more breakfast to teens?’ was to offer moms better coffee,” Karnstedt said. The strategy worked. Coffee sales, in particular, doubled.
Sometimes you find things where you are least likely to look!
Here is the link to the full article: Marketing Analytics Specialist Quantifind Doubles Backing - Fortune
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