The year of the Marketing Math factory

The year 2018 will be the year of the Marketing math factory. Companies who win will adopt Marketing math & build common sense on top of it. One of the biggest changes the algorithmic approach brings for both businesses and consumers is a rich new level of interactivity. Algorithms & Math will allow Marketers to make meaning out of this data & make it actionable. The Mad advertising men will soon be running a Math factory.


The customer experience for many legacy companies is often secondhand or thirdhand. Legacy companies go through distributors & therefore have only a second-hand insight about consumers. While the new age businesses have real-time interaction with their Mobile apps or websites available to them for defining their customer strategy. Dr Ram Charan calls these new age companies Math houses. Their knowledge about customers is so rich that Uber had to deal with questions about privacy after some press reports about a data insights tool it used called “God view”.


The world is changing in one significant way-companies are willing to share information & have started to access data that is available publically. Open data—public information and shared data from private sources—can help create $3 trillion a year of value according to Mckinsey.


And new age companies do this very well, in fact, we can call this, the notion of “profitable data sharing”. They do not hesitate to share data across partners to ensure their customers get a kick-ass solution. So the new age companies use partnerships through API’s very effectively. Twillio, for instance, provides a service that allows partners to send and receive voice and SMS communications.When a customer receives an SMS message telling them that their Uber driver has arrived, this is powered by the Twillio API.

Also, Uber uses Google Maps, SendGrid (e-mails), and Braintree (payments) to make it ridiculously easy for consumers to interact with them. Airbnb, too, uses SendGrid, Twilio, and Braintree. Uber allows itself to be embedded into the Open Table and United Airlines apps. The OpenTable app has a “Ride With Uber” feature, making it easy to book an Uber ride with a single click within the OpenTable app. This again appears on the screen when paying your check using the OpenTable app.


They share data through API’s.There are over 14,441 API’s offered by firms today, according to 


As a term “API” has been around for a while, but the modern, Web-connection version gathered steam in the early 2000s thanks to Amazon’s Store API. This allowed any Web property to have an Amazon presence on its site.Facebook and Twitter soon followed suit with their own open API strategies. A Web publisher that integrated with Facebook’s or Twitter’s login API(s) began to get richer insights about their customers, in turn allowing them to sell better products and services to their advertising customers.

 You don’t see legacy companies doing this – HUL sharing APIs with Philips or Saffola sharing APIs with FitBit? Or, HDFC Bank sharing APIs with the Future Group?


 The algorithmic & API based business will be the business of the future and it will change marketing, as we know it. Gartner has predicted that By 2020, algorithms will participate in 5% off all economic transactions. The real wild card and potential game changer though is the Internet of Things (IoT). Over the next decade, as the IoT becomes a reality, almost everything powered by electricity will become web connected with a digital exhaust. It is estimated that there will be up to 50 billion connected devices in the world by 2020 (about 10 billion exist today).


And yet, despite this invasion of Algorithms in the marketing world, about 61 percent of consumers are less likely to make future purchases following less-than-satisfactory personalized experiences, according to a study conducted by Forrester Consulting. About 91 percent of marketers are prioritizing personalization but only 16 percent have the ability to capture customer intent and deliver real-time, behavior-based marketing across channels.

Pointing to this disconnect and the need for brands to contextualize each customer engagement, the study highlights that while 66 percent of marketers rate their efforts at personalization as ‘very good’ or ‘excellent’, just 31 percent of consumers report companies are consistently delivering personalized, cross-channel experiences.


Because consumers are sharing so much personal data with brands, they expect value in return – in the form of personalization & rewards. And they want to see it translate into a superior customer experience for themselves. While most marketers seek to improve personalized customer experiences from this customer data, their strategies are immature and their marketing efforts are falling short in this regard.


To move to a new era, Marketers must set up Math factories. Marketers need to visualize a Math factory like a manufacturing plant with operators and assembly lines, with automated production lines. Leads come in like raw materials & finally reach the ‘distillary’ area – where the “segment of one” nurture system, the remarketing engines, and dynamic content platforms refine them to finished products: ‘Customers’. For this CMO’s will have to reimagine their teams, bring in the left & right brained people together into one team. True value add always happens at the intersection points, CMO’s can make the math factory work if their creative people can connect with their Math geeks & make the customer magic happen!

You can read more about data led marketing here: Cequity – Latest thinking in Analytical MarketingCequity | Latest thinking in Analytical Marketing 

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