Advance Customer Analytics (Day 1)

Recently I attended a course on Advance Customer Analytics. With this post I will try to share my learning from the sessions.

During the session, the faculty discussed about “Squatty Potty Case Study”.The link to their Social Media campaign is: https://www.youtube.com/watch?v=YbYWhdLO43Q

Because of this campaign they were able to achieve a $17M+ in revenue.

The key steps of any Campaign Design:

1. Strategic Intent:

· Mission: Objective of Campaign

· Market: To whom the campaign is addressed

2. Strategic Execution:

· Message: What is the story to be communicated

· Media: Where and How story will be delivered

3. Strategic Impact:

· Money: How much will be spent?

· Measurement: How impact will be accessed

For any marketing team in today’s world it is very difficult to justify the campaigns and cost associated to it.

Mentioned below are 3 key financial parameters which can be used to determine the campaign’s success.

1. Net Present Value:

Net Present Value (NPV) is the value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present.

In simple words, if I am investing the money in a fixed deposit in bank and if I invest the same money in a venture/campaign, NPV will tell me whether my venture investment was better than what I invested in bank.

2. Internal Rate of Return:

The Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of a project zero. In other words, it is the expected compound annual rate of return that will be earned on a project or investment.

IRR method allows companies to compare and rank projects based on their projected yield. The investment with the highest internal rate of return is usually preferred.

3. Acquisitional Cost:

Customer acquisition cost is the fee associated with convincing a consumer to buy your product or service, including research, marketing and advertising costs.

It should be considered along with other data, especially the value of the customer to the company and the resulting return on investment (ROI) of acquisition.

Non Financial matrices that can be used are:

1. Brand Awareness

1. Number of reviews posted
2. Valence of reviews
3. Number and valence of other
4. Users responses to reviews(+/-)
5. Number of wish list adds
6. Number of times product

2. Brand Engagement

1. Length of reviews
2. Relevance of reviews
3. Valence of other users ratings of reviews
4. Number of wish list adds
5. Overall number of reviewer
6. Average reviewer rating score

3. Word of Mouth

1. Frequency of appearances
2. Timeline of friends
3. Number of posts on wall
4. Number of reposts/shares/like
5. Number of responses to friends
6. Referral invites

For a good social media campaign, one can follow the 4C approach:

1. Connection — Brand Awareness
2. Creation — Brand Engagement
3. Consumption — Word of Mouth
4. Control –

A campaign has to be controlled, else it can go against you. Social media campaigns can backfire very quickly and continuous monitoring of these is required.

Now we know what are they key aspects of customer campaigns, but how analytics can help us in that or what is the process to be followed to get a good campaign designed?

The overall plan shall have three main components:

1. Identify:

a. Customer

b. Company

c. Competitor

d. Environment

2. Define:

a. Segmentation

b. Targeting

c. Positioning

3. Process:

1. Ask Questions regarding:

a. Customer Attribution

b. Segmentation & Targeting

c. Customer Churn

d. Customer Life Time Value

e. Recommendation Engines

f. Marketing Mix Modelling

2. Define Data

a. What is the type:

- Metric

- Non Metric

- Structured

- Unstructured

b. How to acquire:

- Experiments

- Survey

- Observations

3. Analyze the data

a. Decide upon customer analytics tools

b. Choose the technique:

- Supervised Learning

- Unsupervised Learning

- Semi supervised Learning

- Reinforcement Learning

4. Interpret

Follow: Analyze — Act — Analyze

5. Take action

- Segmentation — Optimize Customer Offering

- Recommendation System — Customer Engagement

- Sentiment Analysis — Understand opinions

Customer Lifetime Value — Drive growth

Will cover the Day 2 learning in my next post :)