Using machine data to drive marketing decisions

How unstructured machine data is proving to be a rich store of intelligence into customer activity for Dominos among others

For any marketer struggling under the weight of the data generated by CRM and other marketing systems, the last thing you may want to hear is that there is another class of data just waiting to be exploited.

Machine data, such as that created by servers and mobile devices, is proving to be a rich source of intelligence into customer activity, especially when mashed up with existing structured data sources such as customer records.

Interest in unstructured machine data has been driving the growth of US-based data analytics toolmaker, Splunk, which at its last quarterly earnings announcement in February reported revenue growth of 53 per cent over the same period a year earlier.

What makes machine data interesting is the range of applications it can be applied to. According to Splunk’s vice-president of business analytics, Tapan Bhatt, the pizza chain Domino’s is using machine data from its mobile applications to make better targeting decisions for its discount offers.

“They are taking data off the mobile app, as well as data on which coupons have been redeemed for different kinds of pizzas, and correlating that with geo-location data,” Bhatt says. “So essentially they are tweaking coupons and offers to drive higher conversions based on customers’ preferences.

“This is the type of data people have not relied upon in the past for campaign execution and refining their campaigns, but that is what we are seeing more and more. People are looking beyond what’s possible in structured data, to look at machine data to drive new kinds of analytics.”

Another example is a “large coffee company in Seattle” taking data off mobile apps to understand what coffee varieties are being ordered at different times of day by different user profiles, Bhatt explains.

Other marketing clients include Tesco, which is using Splunk to analyse the path taken by clients through its website prior to purchasing, and the online music service Cricket, which uses it to determine what music may be popular that is not in the company’s library.

According to Bhatt, Splunk differs from traditional business intelligence tools is in its ability to mash up unstructured machine data with structured data from business applications, and do so in real time to provide immediate feedback to marketers.

The full range of uses of machine data are incredibly varied. National Australia bank for instance is using it to analyse server data from its online banking channels, such as cookie downloads and changes in IP addresses for individual users, to identify potential fraud.

In Japan an elevator maintenance company is using Splunk to analyse the records from sensors on the lifts that it services to determine usage patterns and create better service contracts for its clients.

“A lot of traditional manufacturing companies are looking to mine the data that whatever they are making is collecting,” Bhatt says. “If you are making medical devices you are collecting so much information, but a lot of that information is thrown away because there is no way to process the data.

“And so now they see what is possible.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or
Error: Please check your email address.
Show Comments

Blog Posts

Social purpose: Oxygen for your brand health vitals

If trust is the new currency, then we’re in deep trouble. Here's why.

Carolyn Butler-Madden

Founder and CEO, Sunday Lunch

Customer experience disruption: Healthcare faces a bitter pill

Over the past decade, disruptors such as Amazon, Apple and Australia’s Atlassian have delivered technology enhanced customer experiences, which for the most part, have improved customers’ lives and delivered unparalleled growth. Can they do the same for healthcare?

Alex Allwood

Principal, All Work Together

How can a brand remain human in a digital world?

Some commentators estimate that by 2020, 85 per cent of buyer-seller interactions will happen online through social media and video*. That’s only two years away, and pertinent for any marketer.

James Kyd

Global head of brand strategy and marketing, Xero

https://bit.ly/2qLgzmR Transform your life a proven digital blueprint

Okitoi Steven

How this banking group tackled a digital marketing transformation

Read more

Its great to hear that companies including JCDecaux, oOh!media, Omnicom and Posterscope Australia have all partnered with Seedooh inorder...

Blue Mushroom Infozone Pvt Ltd

Out of home advertising companies strive for greater metrics and transparency

Read more

Much ado about nothingAnother fluff piece around what it could possibly do rather than what it is doing

gve

How AMP is using AI to create effortless ‘experiences’

Read more

is it true that Consumer expectations are also changing as a result. If we trust someone with our data there is also an expectation that ...

Sunita Madan

Society will decide where digital marketing takes us next: Oracle

Read more

This Blog is Very interesting to read and thank you for sharing the valuable information about Machine Learning. The information you prov...

johny blaze

What machine learning has done for the Virgin Velocity program

Read more

Latest Podcast

More podcasts

Sign in