We know–data models can be intimidating. As analytics and science remain central to Marketing’s success, models are now among the primary vehicles every marketer needs to know how to develop and leverage. If you’ve already dived into the deep end on models, congratulations. On the other hand, if you’re just dipping your toe into the water, have no fear, because while there may be a bit of a current, it is time to venture forth.

Mathematical models help us describe and explain a “system,” such as a market segment or ecosystem. Marketing models enable us to study the effects of different actions, so we can begin to make predictions about customer behavior, such as purchasing behavior. There are all kinds of mathematical models-statistical models, differential equations, and game theory.

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Define the Scope of Your Model

Regardless of the type of model, all models use data to transform an abstract structure into something we can more concretely manage, test, and manipulate. As the mounds of data pile up, it’s easy to lose sight of data application. Because data has become so prolific, you must first be clear about the scope of the model and the associated data sources before constructing any model.

Marketing Models for Every Marketing Library

You’re ready to take the plunge–good for you! What models should be part of every marketer’s library? Whether a novice or a master, we believe that every marketer must be able to build and employ a number of primary models, with these four being your starting point:

1. Customer Buying Model: How do your customers and prospects move through the various stages of their buying process? Illustrates the purchasing decision journey for various customers (segments or persona-based) to support pipeline engineering, content, touch point, and channel decisions. This model should account for all the behaviors from investigation to consideration and from purchase to advocacy.
2. Customer or Market Segmentations: How do you know which markets to pursue or which customers are the most valuable? That is the purpose of segmentation models. They enable you to evaluate the attractiveness of segments, markets, or targets.
3. Opportunity Scoring Model:  How do you know which opportunities to nurture and which should be forwarded to the Sales team?  This is the purpose of an opportunity scoring model. It enables Marketing and Sales to agree on when opportunities are sales-worthy and sales ready.
4. Campaign Lift Model:  The point of any campaign is to create an incremental positive shift in buying behavior.  This shift, called lift, estimates the impact of a particular campaign. Campaign lift models help you ascertain whether the campaign you’re considering will produce the desired results.

While there are many other models that should be in your Marketing library, incorporating these four models serve as an excellent starting point. For those who have already developed models within your Marketing organization, we would love to know whether you have conquered these four or even whether you agree that these four should be at the top of the list. As always, we want to know what you think, so comment, tweet, or contact us with your response!

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