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Segmentation, Profiling, Regression, Association - Analytical Techniques Throughout the Loyalty Lifecycle
Transcript of Segmentation, Profiling, Regression, Association - Analytical Techniques Throughout the Loyalty Lifecycle
Segmentation, Profiling, Regression, Association
Create a unique shopping experience Sustain customer satisfaction
Protect customer loyalty
Increase share of wallet
What is Analytics?
"The process of discovering meaningful knowledge (e.g. correlations, patterns and trends) by sifting through large amounts of data stored in repositories, using statistical and mathematical techniques."
Helps managers to predict what’s going to happen in the
(as opposed to conventional Business Intelligence, which is about explaining the past and the present)
Who qualifies for what?
Selected Techniques and algorithms
Who gets what?
Likelihood to churn: High / Medium / Low
Loyal / "itchy feet"
Will respond to campaign yes/no?
Recency, Frequency, Monetary
Tel: +86 (0)21 6352 3586
Mobile: +86 156 1858 6003
LinkedIn group: "
Customer Analytics in Asia Pacific
Dr. Olivier Maugain
Thank you for your attention
Objectives of CRM
Challenges for Marketing and CRM
Two key questions
Who are my best
How to retain customers
and make them
value and loyalty
Time Series Analysis
Customer Lifetime Value (CLV)
CLV = Current value (CNY)
x Growth of customer value (%)
x Customer longevity (# of months, years, visits)
Artificial Neural Network
(e.g. Cox Regression)
How much is customer A worth?
How much can we expect her to spend in the future?
Also used to predict
who behaves in what way
Market Basket Analysis
the number of ads (or targets) of a marketing campaign in order to improve its
- Number of ads sent: 1'000
- Cost of each ad: 100 CNY
- Value of a positive response: 1,000 CNY
- Random selection of targets
Response rate: 10.0%
-> Number of positive responses: 100
-> Revenue generated: 100'000 CNY
Cost of campaign: 100'000 CNY
of the campaign:
- Number of ads sent: 600
- Response rate: 13.5%
-> Number of positive responses: 81
-> Revenue generated: 81,000 CNY
- Cost of campaign: 60,000 CNY
of the campaign:
: 40'000 CNY