Reasons for conducting a test
- standard practice (test all marketing programs)
- strategic question (reactivate lapsed customers)
- tactical questions (which incentive to use)
Design a test
- what marketing variables (prices, etc.)
- type of test (a/b, control/A)
- sample (population size)
Establish test metrices
- significance
- cut off data
Execute and Monitor results
Analyze and report test results
Make marketing decision
How do companies gather data?
- purchase
- census
- associations
- research firms
- previous purchase data
- survey/ questionnaire
- focus group
- interview
- click throughs (web site)
- accounting data
- cell center
- customer inquiries
What is “data mining”?
- a set of statistical routines that permit pattern detection in large data sets
Hierarchy of customer-focused marketing strategies
- customization
- personalization
- transaction
- interaction
- information
On-line Tasks
- pay bills
- entertainment
- purchase
- communication
- research
Segments of Internet Users
- rural residents are less likely to be online
- teenagers are heavy communicators- frequent social networking and gaming sites
- seniors are less likely to be online
- usage segments include connectors, simplifiers, routiners, surfers, bargainers, and sportsters
- broadband access in the home is key to behavioral segmentation