Guiding the process of data “mechanisation” with IBM SPSS Predictive Analytics

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In what way are predictive analytics a specialty at Equancy?
Hervé Mignot, associate partner at Equancy, explains: “Equancy is a marketing communications and customer relationship management agency with particular skills in the area of predictive analytics. Combining conventional marketing industry techniques with skills that are based on client data and what it can provide in terms of information has always been one of Equancy’s strengths. Having this blend of skills in the same company is quite unusual.

“Companies with a background in marketing communications rarely develop skills in exploiting the value of data. In fact the opposite tends to be true: companies that specialise in data analysis usually adopt an approach that is too statistics-oriented and hence find it difficult to incorporate data analysis as part of a more general approach. Equancy developed the predictive analytics aspect of its business four years ago.”

How did predictive analytics develop at Equancy?
“Predictive analytics has become an essential part of the way to approach the problems of companies whose marketing strategies are based more and more on the analysis of facts and data. Put another way, Equancy moved away from industry assumptions and instead focused on using knowledge extracted from data in order to direct and feed its marketing thinking. For clients, the impact of this is very important. For example, predictive analytics is being used as a new way to manage client segmentation – aiming at rebuilding segmentation models based not on the marketer’s partial view of things, but on the reality observed in the behaviour of customers. All of these parameters are then analysed using data analysis tools.”

How does this change the marketer’s ‘trade’?
“Training courses are now based increasingly on two components: marketing and data analysis. In fact, the whole approach to marketing is evolving. Initially we look at what the data is telling us; then we introduce the predictive component in order to generate predictive models – for example, to find out whether a new customer will become a good customer within six months. Predictive analytics act as a supplement to conventional marketing processes to better direct the marketing strategies of companies.

“Previously, if you wanted to obtain this kind of information, you had to conduct surveys in the field. But this approach can throw up a number of major biases: the way you phrase your questions, the way you define a market before you even begin, and the way you present the results, which can be misleading or inaccurate. Predictive analytics changes the nature of the way information is used to understand what is going on. Another major change in the marketer’s trade is the developing need for “mechanising” the data analysis and scoring to measure the willingness of consumers to be presented with more targeted and personalised offers. This goes well beyond analyses based on macro-segments.

“The company finds a benefit in this because it can now fine-tune the way it speaks to customers by personalising the message more precisely. The consumer also benefits: everyone has experienced spam and the lack of personalisation can be overwhelming.”

How does IBM SPSS Predictive Analytics software fit into this context?
“Straightforward data analysis needs to be part of the process of marketing and communication: if you only have raw data, you lack the final stage that enables the smooth integration of data into the company’s marketing process. There needs to be the right balance between highly sophisticated analyses and simpler approaches in order to achieve practical results. It is Equancy’s job, as a partner of IBM SPSS, to find the correct balance between solutions’ capabilities and our customers’ needs. Meanwhile, IBM has a duty to be at the forefront of innovation and technological progress.”

About IBM Business Analytics
IBM Business Analytics software delivers actionable insights decision-makers need to achieve better business performance. IBM offers a comprehensive, unified portfolio of business intelligence, predictive and advanced analytics, financial performance and strategy management, governance, risk and compliance and analytic applications.

With IBM software, companies can spot trends, patterns and anomalies, compare “what if” scenarios, predict potential threats and opportunities, identify and manage key business risks and plan, budget and forecast resources. With these deep analytic capabilities our customers around the world can better understand, anticipate and shape business outcomes.