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Target your Net Promoters with a fun modeling project and CRM initiative. So here is a little trick for smart people who use "little" data with advanced research designs who parter the rest of us who use big data. Use this as a mentoring opportunity to show that database marketing is here to stay and has applications in building models for social media referrals to up and coming social media gurus.
Once all is said and done, you will have a few measures to model the underlying dynamics of who responded to an amplification campaign. This is a new kind of response model that uses the properties of the referrers and the new customers as predictors in the same model.
For predictive analytics professionals who have been fortunate enough to be considered trusted partners by their colleagues in the direct marketing industry, the Social Media Guru in some firms stands out with certain features, like charts and graphs referred to as analysis results, but at the end of the day, they are just reports with counts and rates that mostly provide no insight as to the underlying dynamics that data mining professionals and researchers crave to deliver to their business partners.
To further confuse business partners, Bloggers have taken the license to quote headlines from research articles without having the evidence to back things up, or even an understanding of the research methods and limitations.
While the Social Media Guru will use buzzwords like “amplification”, this is just a term that embodies the spirit of the trusted Net Promoter Concept:
“On a scale of 0-10, how likely are you to refer to a friend?”
This question is easy to answer, easy to understand, and easy to communicate. It is hotly debated in industry, but it is mostly the result of a grudge match between intellectual property holding companies who have lost market share from widespread industry use of this simple question that has put many a client satisfaction consultant into different applied research areas.
Another benefit of the NPS score is industry social evens where drinking is involved. When competing firms want to go out to the bar, the NPS score for their firms often replaces fishing stories.
While Social Media Guru bloggers all over the world were copying and pasting research headlines that hailed Facebook as an effective marketing vehicle, they failed to mention that this research was mostly conducted on existing customers for retailers, and it turned that what amounted to a really great snakebite treatment, morphed into a cure for cancer in the media.
Most of the firms I have engaged with actually want new customers to grow market share above and beyond only gaining wallet share of existing customers.
First, sample your customer base and make sure you address the issues from the“Dashboard Confessions: The Sins of Satisfaction” post from my research partners and myself.
Take the sample, measure the NPS scale, model and predict the NPS scale (not the score) for the rest of the population. You now have a targeting model for amplification among your Net Promotors. Plug these folks into your CRM package and have one of your marketing managers create a client experience program to knock their socks off by rewarding them for interacting with you, and rewarding them for recommending you (tracking). Also, reward prospects for trusting their friends (tracking).
Questions, comments and smart remarks are welcome.