Mathematical Marketing

What is Mathematical Marketing?

Mathematical Marketing is the process of marketing to existing customers based on a scientific understanding of how their past behavior predicts future purchases.

Elements of Mathematical Marketing

• Behavioral tracking--transaction records are the input data
• Predictive analytics--predicts which customers are going to buy next, what they are likely to buy, and which customers are likely to defect
• Behavioral targeting
      Algorithms show marketers how to make the right offer to the right customer at the right time
• What-if analysis
      Predictive tools enable manipulation of target lists to achieve the best outcome
• Testing
      Expert systems for automated testing to determine best target groups and offers
• Results measurement
      Determine ROI to iterate methods to achieve maximum revenue
      “If you can’t measure it, you can’t manage it.” –Drucker

Longbow and Mathematical Marketing

Longbow is the first easy-to-use and affordable tool to use all the new techniques of mathematical marketing to build revenue. Watch a Longbow demo.

Mathematical Marketing Facebook Group

 This non-commercial group is the place to discuss how mathematics and analytics are changing the face of marketing.

 

Read about Mathematical Marketing

• The Science of 1 to 1 Marketing, by Mark Klein, first published in Sales and Marketing Management Magazine, April 2008. This article, the first in a series of three, describes the elements of Mathematical Marketing--behavioral tracking, predictive analytics, behavioral targeting, testing, what-if analysis, and ROI measurement -- and shows how they form the foundation for 1:1 Marketing.
• The New Tools of Mathematical Marketing, by Mark Klein, first published in 1 to 1 Media, February 2008. Mathematical Marketing closely parallels the process of search engine marketing for new customer acquisition. This paper, the second in a series of three, discusses new developments that are enabling more widespread use of mathematical marketing techniques, including Software as a Service, visual math, new algorithms for predictive analytics, new testing methodologies, and real time what-if analysis.
• The New Rules of Mathematical Marketing, by Mark Klein, first published in Target Marketing Magazine, June 2008. This is the concluding article in a three part series on Mathematical Marketing.  It describes how to apply the new tools and techniques to marketing campaigns.
• Field Guide to Mathematical Marketing, by Mark Klein.  This eBook gives a thorough perspective on Mathematical Marketing.