Question: What is the value add of a single individual out of 50M?

Answer: None…. per say!

Analytics is part of my daily job, it’s not my number one duty every day but it is something that comes up I’d say more than 50%.  Working on analytics is a term which is so broad but how it relates to customers starts to become a topic of interest to me.  Think about it in simple terms like a cluster of grapes and a cluster of blueberries, the single grape and the single blueberry are on the same level of an individual.

What is commonality between the grape and the blueberry, they are both fruits!  Okay, what’s the point?  Take that grape and blueberry and bring it back to reality now, if you are trying to target people for the purpose of marketing does that single grape and that single blueberry really matter?  IMHO… ( In My Humble Opinion) absolutely not.  From a perspective of an analytical mind it would better in an ideal world with unlimited income to target those people on an individual basis, contrary to that notion 99% of business this is not possiblee.  Sure if your audience is comprised of less than 100 members you could surly target individuals and be able to market them on an individual basis.  Take that 100 people and make it 50M, is there anyway to really make this worth while?

Digging into this a little deeper to actually give you something to ponder some real meat to apply to everyday analytical marketing and thinking.

Real world deal! – You own a large corporation( okay maybe not own but are in control of) and you want to find a way to target people either in a group or by individual, keep in mind you have over 50M members.  QUICK…. What is the most value ?  If you said target the individual you would be right if the number of customers you were trying to target was a much smaller of a group.  Targeting individuals on such a large scale would cost your company a lot of dollars and the ROI(Return On Investment) after spending massive amounts of money will not be beneficial.

Every individual falls into a group in some way or another.  To simplify all of this let me give you a prime example of how targeting an individual on such a large scale is just asking for a let down and millions of dollars wasted.  Lets take a look at a group of people that have an income range of $50,000 to $60,000 dollars and you want to look at a store type.  Now lets break down the products that that store type has Look at the table below.

Store Format 1 

(10,000 members)

Store Format 2 

(5,000 Members)

Appliances 

Top 3 items

  • Item 1 (2K users purchased this item)
  • Item 2 (1K users purchased this item)
  • Item 3 (500 users purchased this item)
  • (Say you can drill down to the top ten users that purchased in this item category and from there get to an individual)

Appliances 

Top 3 items

  • Item 1 (1K users purchased this item)
  • Item 2 (500 users purchased this item)
  • Item 3 (50 users purchased this item)
  • (Say you can drill down to the top ten users that purchased in this item category and from there get to an individual)

Clothing Clothing
Food Food

For sake of making things not to complicated I’ve used smaller numbers but I think you are starting to see my point…. At least I hope you are.

The individual in the Store format 1 and the indivudual from Store format 2 have no correlation to one another, the bigger and easier way to target this example is how can we get the group of 50 users and get more transactions into the item 3 under appliances.  We need to be able to group individuals to make them easier to manage.  Targeting the groups they fall into is more practical and is easier for everyone to work with.

If someone can provide me with some concrete evidence oh how they can target the grape and blueberry on an individual basis that does not waste money and or time I’d be delighted to hear your take.