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Of Metrics and Models

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Dynamic Customer Strategy: Today's CRM is a 10-chapter book published in 2014 by the Business Expert Press and written by Jeff Tanner, Jr., Professor of Marketing and Associate Dean of Faculty Development and Research at the Hankamer School of Business at Baylor University. In this book, the author explains how business leaders can capitalize on "Big Data," or the infinite customer information available in today's technology-based business environment. He provides a model for competitive advantage and maximized marketing performance through Dynamic Customer Strategy (DCS), an approach to understanding and utilizing Big Data. He includes real-world examples throughout the book and offers practical advice and discussion questions for both practitioners and students. Chapter 8, Of Metrics and Models (17 pages), considers the use of data analysis in marketing models. The author reviews basic metrics and provides a model for data monitoring in three steps. The first is to decide what to monitor. The second is to identify the tolerance range (the appropriate range of variance in results). The third is to create a reporting or display system that provides for meaningful comparison and monitoring. He looks at different display types (such as statistic, real-time, conventional, and structured) and offers insight on how to determine the best method. He outlines assumptions in the decision-making process and provides three recommendations for decision-making. First, identify the assumptions underlying the data. Second, create metrics that fit the decision at hand. And, third, include statistics in the decision-making process. He illustrates the successful use of metrics through the example of Royal Bank of Canada.
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