Data-Driven Marketing Intelligence
Throughout this course, I challenged myself by learning quantitative approaches in the field of marketing. With the rise of machine learning, I believe that knowing how to assess numerically a marketing strategy is key to evaluate its effectiveness with the consumer.
For example, when formulating a marketing strategy, it is important to know and understand our consumers. A way to do so is by using the Customer Lifetime Value or CLV in order to know how to effectively create clusters of consumers. As a result, we can evaluate how much we should allocate to each group of consumers by looking at their loyalty to the company when sending incentives. For example, this article “how 5 Brands Grew Their Customer Lifetime Value 2X in Less Than 1 Year with Loyalty Programs” highlights the importance of this tool to marketers. Of course, depending on the industry, I believe that this tool should be utilized within a greater context in order to form effective decision-making. In this article, we read the different strategies a firm employed in a crowded online industry to stand out by utilizing customized emails and the effect on its customer lifetime value.
In addition, by utilizin Stata, I was able to carry out calculations when assessing a marketing strategy and evaluating the impact on a company’s profit while still responding to the consumers wants and needs.
For example, a project I worked on was one of a bank where I was assigned to evaluate their online channel pricing strategy regarding their different services. The project involved analyzing the variance in consumers’ profitability and understanding which consumers are more profitable depending on the banking services they use. From this assessment, marketers can efficiently adapt their strategies to respective consumers. Below, we can see how Stata can help consumers uncover insights when utilizing marketing strategies in order to efficiently optimize the company’s profits.
With this project and many others, I was able to efficiently use Stata when using a company’s data for the evaluation of marketing strategies. I believe that the role of a marketer is to not only formulate and implement successful strategies to engage with consumer but to also run simulations and evaluate if it would be an appropriate one.