Dec
12

Bayesian Statistics – Conclusion

People groan whenever I bring up statistics in relation to marketing theory.  In reality, though, most marketing decisions are made based on numbers.  Without some level of smart statistical analysis, you can’t make an informed decision based on your data and all of those research dollars are wasted. [Read more...]

Dec
11

Bayesian Statistics – Part IV

Understanding the Bayesian average is one thing.  Understanding how to calculate it is something different.  Understanding how to apply it is something in a whole other league.  So here’s a quick and simple case study regarding product feedback and comparing aggregate product ratings using Bayesian statistics. [Read more...]

Dec
10

Bayesian Statistics – Part III

A traditional average is easy to understand.  If you take a group of people, add their heights together and divide by the number of people in the group, you know the average height.  A simple average is a relatively easy way to create a prediction for future behavior – in many cases, you can reasonably assume a new person entering the room would be at or near the average height. [Read more...]

Dec
09

Bayesian Statistics – Part II

Most statistics are based on solid, static data.  The average for a group of numbers is independent of what numbers are actually included in the group.  Statistics give us a snapshot of our data so we can make high-level decisions based on it without knowing the details of each discrete measurement.  This simplicity makes statistics powerful indicators in business, but it also betrays their weakness. [Read more...]

Dec
08

Bayesian Statistics – Part I

In our careers as marketers we are often presented with problems that require some kind of statistical analysis.  One of the most frequently-faced issues is that of content or quality ratings. [Read more...]

Nov
18

Make it Meaningful – II

Last week, I had a client exclaim with excitement that they’d seen a 400% increase in their web traffic as a result of a recent advertising campaign.  On first blush, this is an exciting statistic indeed … until you dig into it. [Read more...]