The Power of Algorithmic Marketing

Joshua Goff of recently wrote, "A massively disruptive transformation is taking place at leading companies – a disruption that could rewrite the entire traditional marketing canon. Instead of gut instinct and experience, companies are turning to big data, algorithms and automation to win and retain customers. Algorithmic marketing is an approach for scientifically managing a full range of marketing issues. Issues that include targeted offers, communications and pricing. It employs advanced analytical methods, including predictive statistics, machine learning and natural language text mining. It harnesses data such as customer location and behavioural information, along with powerful computing systems to match customers with context-sensitive products and services."

He goes on, "It also helps to optimise customer processes and experiences and plays a role in core operational processes like call routing, payment processing and risk assessment. There are already some signs that suggest the algorithmic marketing transformation is underway, especially in industries that rank high in terms of big data value potential, such as financial or information services. As algorithmic marketing takes hold, it is likely that big winners – and potentially even bigger losers – will emerge in the near future. In North America, grew 30 to 40%, quarter after quarter, throughout the recession, while other major retailers shrank or went out of business. How Amazon achieved these results may be surprising."

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