So, I am seeking your assistance. Download this spreadsheet with ten thousand simulated customers: MTD_Advertising_Effectiveness.xls
The spreadsheet has one row per customer. Each column in the spreadsheet is described here:
- Customer Number = Uniquely identifies each customer.
- Recency = Months since last purchase, grouped into segments.
- Frequency = Number of lifetime purchases, grouped into segments.
- Monetary = Average Order Size, grouped into segments.
- Receive Catalog = Yes/No indicator telling whether customer received a catalog in the past month.
- Receive Postcard = Yes/No indicator telling whether customer received a direct mail postcard promotion in the past month.
- Receive E-Mail Campaign #1 = Yes/No indicator telling whether customer received the first of two e-mail campaigns in the past month.
- Receive E-Mail Campaign #2 = Yes/No indicator telling whether customer received the second of two e-mail campaigns in the past month.
- Catalog Net Sales = Amount customer spent via the telephone channel in the past month.
- Online Net Sales = Amount customer spent via the online channel in the past month.
When you have completed your analysis, submit a document (either MS-Word or PDF format) with your findings. Your analysis must have the following table, with the following information (your need to complete this table to have your results published):
|The MineThatData Advertising Effectiveness Challenge|
|Net Sales||Net Sales||Net Sales|
|E-Mail Campaign #1||?||?||?|
|E-Mail Campaign #2||?||?||?|
The goal of this project is to help marketing individuals in the online/catalog multichannel world understand how they should measure advertising effectiveness. Keep that in mind when you summarize your findings. You are speaking to a marketing executive who may not be well-versed in analytics.
I will accept entries between now and January 31, 2007. I will publish all findings, so long as the table mentioned above is completed and your write-up can be understood by a marketing executive.
This exercise provides strong analytical individuals a good opportunity to showcase their skills. Vendors, in particular, have a great opportunity to illustrate use of their tool-set for marketing individuals who make decisions about which vendor to work with. Online/Catalog marketers have an opportunity to learn how they can improve their advertising measurements.
Please forward this post to your analytically-minded friends, and vendors who may already provide solutions to problems of this nature. Let's see if we can find a way to improve advertising measurement. I will post all completed entries in early February.