Great article last week by the Wall Street Journal’s Dennis Berman titled “What’s your Algorithm.” His first full paragraph says it all:
“The new year will bring plenty of splashy stories about iPads and IPOs. There is a more important theme gathering around us: How analytics harvested from massive databases will begin to inform our day-to-day business decisions. Call it Big Data, analytics, or decision science. Over time, this will change your world more than the iPad 3.”
The full article can be found here.
He even references the book Moneyball, and how business are taking the same analytic approach as Billy Beane’s Oakland A’s baseball teams took to help them succeed. I’ve been saying this for years, and so Berman’s article inspired me to dust off a blog post about this very topic from last November:
With the Brad Pitt movie Moneyball doing so well in the theaters recently, the topic of the statistical revolution in baseball is once again front and center. Moneyball tells the story of how the small-market Oakland A's used statistical analysis as a strategic advantage to achieve great success against their wealthier rivals. The idea of Moneyball has taken hold over the last decade, where almost all teams use some form of statistical analysis. However, not all teams (or companies) completely embrace the value of quantitative analysis – to their own detriment.
In fact, the teams achieving the most success in baseball today, including the world champion St. Louis Cardinals, have great statistical analysis teams (quantitative), along with great scouting departments (qualitative). When the intelligence produced by these two different groups agrees, it provides the organization supreme confidence to invest millions of dollars into a ballplayer. Combining the Quantitative (science) with the Qualitative (art) allows for better business decisions in baseball, giving the teams with the best of both a significant advantage over their competition. The best retail and restaurant organizations are doing the same thing.
The best retailers and restaurants are investing to make sure they have strong quantitative/analytical tools that are on par with their qualitative expertise. This helps them make better business decisions:
• Better real estate decisions
• Better marketing decisions
• Better operations decisions
These organizations are combining science with art to help give them supreme confidence in their business decisions, which is helping them increase the value of their companies – all while getting a big leg up on the competition. Buxton helps many of these retailers and restaurants with the necessary quantitative/analytical tools.
Buxton combines over 250 databases, including in-house data on 112 million households, with 17 years of methodology and experience to produce the best quantitative tools in the industry. These tools, combined with your company's expertise, will lead to solutions that will help you help your organization:
• Increase your Average Unit Volume & ROI for new store locations
• Identify which existing locations have potential and are worthy of additional investment and which need to be relocated/shuttered
• Decrease Marketing Spend but Increase Campaign Response Rates by being more targeted and efficient
• Get more dollars out of your existing customers and efficiently and effectively find new ones
• Put Marketing, Real Estate and Operations on the same page instead of separated in silos, doing their own thing.
The solutions to help you make better business decisions are out there. Use data to validate your gut.