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

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

3 marketing mistakes to overcome when courting prospective customers

Marketing that urges respondents to ‘buy now’ is a little like asking someone to marry you on your first date. At any time, only 3 per cent of the market is looking for what you’re selling, so the chances of your date randomly being ‘The One’ is pretty slim.

Sabri Suby

Founder, King Kong

Why are we dubious about deep learning?

The prospect of deep learning gives those of us in the industry something to get really excited about, and something to be nervous about, at the same time.

Katja Forbes

Founder and chief, sfyte

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

Where does the claim that 2 million Australians have tested come from ? Anecdotal information suggests that this is way off the mark.

David Andersen

DNA-based marketing: The next big thing?

Read more

Thank you for the info , being part of a digital marketing agency in kerala , this proved handy and get to know with upcoming trends. htt...

Dotz Web Technologies

Predictions: 9 digital marketing trends for 2019

Read more

So who then is correct? The Research or The skilled Digital people.

Anene

Report reveals Australia faces digital skills shortage

Read more

The blogs are really appreciable and one can trust the knowledge and information provided in the writing.The article you do produce on a ...

Prince Arora

5 brand strategy lessons from Gelato Messina

Read more

Thanks for sharing! Meet the Softcrylic team at Adobe Summit 2019. This team works with a broad range of clients helping solve complex bu...

Anderw Hagel

What Richard Branson has to say about experience delivery, leadership and disruption

Read more

Latest Podcast

More podcasts

Sign in