marketing analytics for ecommerce

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  1. 1. Marketing Analytics for E- Commerce By Tuhin Chattopadhyay, Ph.D.
  2. 2. Marketing Analytics 6.Customer Satisfaction model 1. Sentiment Analysis 2.RFM Analysis 3.Repurchase Likelihood model 5.Refund Analysis 4.Conversion Analytics Key Recommendations: 1.Improve product quality to increase the overall satisfaction of the customer (6th Model). 2.Target the complaint customers who have done only one/two transactions (3rd Model). 3.Take necessary measures to reduce the customer complaints by incorporating on time delivery of orders, lowering shipping costs and ensuring product quality (for e.g. dark/ light) before dispatch (1st & 5th Model). 4.Special focus on 1st time customers to avoid complaints for longer association with client (2nd & 3rd Model). 5. Mobile App demands improvisation and should be user friendly (4th Model).
  3. 3. 1.WordCloud&SentimentAnalysis-Prints Positive Words Negative Words Top 5 Positive words which customers are talking about 1. Shipping 2. Time 3. Better (context in comparison with competition, customer experience) 4. Quality 5. Editing Recommendations for top 5 words with negative sentiments: On Time: Timely delivery of orders and reduce the time to upload/download photos on the portal. On Shipping: Focus on reducing shipping costs. On Quality: Quality control check before shipping products. On offer: customize offers with free shipping costs. On option: More editing, cropping, layout options for prints category. 18 19 20 20 22 26 36 38 45 51 -2 -6 -4 -3 -10 -1 -10 -6 -22 -21 -30 -20 -10 0 10 20 30 40 50 60 free offer option size use editing quality better time shipping Negative Positive
  4. 4. Research Objective: To identify the existing customers who are most likely to respond to a new offer. R, F, and M stand for Recency How recently did the customer purchase? Frequency How often do they purchase? Monetary Value How much do they spend (each time on average)? 2. RFM Analysis
  5. 5. 2.1. RFMAnalysis 4914 4218 5293 4768 5577 4158 5284 44583883 2915 3603 32033068 2358 2647 2350 4170 3689 5844 5100 17-22 days ago 12-16 days ago 8-11 days ago 4-7 days ago last 3 days ago Frequency - One Time Visitors Monetary (in dollars) NumberofCustomers Recency 3368 3276 4349 34974054 3564 3463 32943132 2504 3283 31053127 2671 4300 3968 3425 3110 5090 4582 2212 2189 3497 33623730 3817 4110 40414124 4029 6379 6441 4258 4617 7877 7819 2616 2781 4797 4575 0.0-2.75 2.76-7.75 7.76-18.12 Above 18.12 Frequency - Two Time Visitors Frequency - More than two Time Visitors
  6. 6. 2.2.REFUNDBASEDONRFM 4907 6521 4524 3191 4375 2664 3668 3509 3317 2643 1292 2908 3612 2648 1453 0 1000 2000 3000 4000 5000 6000 7000 17-22 days 12-16 days 8-11 days 4-7 days last 3 days One Time Visitor Two Time Visitor More Than Two Time Visitor Most Refunds are happening across one time visitors NumberofCustomers This is for 22 days data only
  7. 7. 5330 3.RepurchaseLikelihoodModelforComplaintCustomers Research Objective: To determine the repurchase likelihood of a customer based on the factors which impact on purchase decisions. 2 3 3 1 2 3 Not Likely Neutral Very Likely Avearge No. of Transactions before the Complaint Avearge No. of Transactions after the Complaint 5329 4188 616 526 0 1000 2000 3000 4000 5000 6000 Did not buy 1-5 6-10 >10 Number of Transactions After the Complaint NumberofCustomers 50.0% 50.0% Status After the complaint Purchased Did not purchase 50% of customers are not purchasing after the complaint Clearly there is a fall in no, of transactions after the complaint Transactional data from 01-11-2012 to 22-02-2015 Complaint/Feedback data from 01-03-2013 to 30-09-2014
  8. 8. 3.1.Repurchasingbehaviorofcomplaintcustomerswiththefrequencycount 0.4% 50% 70% 82% 85% 85% 93% 97% 92% 94% 96% 1 2 3 4 5 6 7 8 9 10 10+ Not Likely 0.7% 48% 74% 73% 89% 85% 95% 83% 91% 96% 96% 1 2 3 4 5 6 7 8 9 10 10+ Neutral 1% 54% 71% 80% 84% 92% 92% 93% 93% 92% 96% 1 2 3 4 5 6 7 8 9 10 10+ Very Likely Frequency
  9. 9. 3.2.1.Forcustomerswhohavenotrepurchasedpostcomplaint (days) (Number of Transactions) Customers who have done only one transaction are not repurchasing after the complaint
  10. 10. Customers who have done at least two transactions are repurchasing again. (days) Customers in these Segments are spending at least 29$ per transaction with the Frequency of >3 transaction and Recency of |t|) (Intercept) 0.35 0.06 5.41 0.00 Package quality 0.02 0.01 3.05 0.00 * Product quality 0.59 0.01 78.58 0.00 * Value of the packaging & shipping 0.06 0.01 9.78 0.00 * Value for money of photo 0.14 0.01 16.00 0.00 Users experience 0.10 0.01 14.46 0.00 Critical Insights: Product Quality leaves the highest impact on Customer Satisfaction. If a product quality scale increases by 1 unit, the level of overall satisfaction increases by an average of 0.59 Package quality and value of the packaging & shipping are not leaving much impact on the overall satisfaction of the customers.
  11. 15. Model Operationalization: Models will be developed on an on going basis with the continual inflow of data. Recommendations/Customer insights from each of the model will be shared on regular basis. Future Proposals: Model Operationalization & Future Proposals Sales Forecast: To forecast demand. Uplift Modeling: To determine campaign effectiveness and target the customers for next campaigning. Market basket Analysis: To know which products are selling together. Market Mix Modeling: To determine marketings impact on sales based on economic data, Industry data, Advertising data, product data etc. Target Marketing: Develop the list of target customers with probability of conversion.
  12. 16. Appendix
  13. 17. 1.2WordCloud&SentimentAnalysis-WallArt Top 5 Positive words which customers are talking about 1. Product 2. Better(context in comparison with competition, customer experience) 3. Quality 4. Collage 5. Shipping Recommendations for top 5 words with negative sentiments: On Time: Timely delivery of orders. On Quality: Improvise printing quality for collage, canvas orders. On Poster: Customize poster sizes, flexibility in designing the layout. On Shipping: Focus on reducing shipping costs. On Collage: Customize placement of photos in collage as per different layout size. Positive Words Negative Words 24 27 31 37 41 41 41 45 54 57 -5 -2 -7 -5 -23 -6 -5 -10 -2 -3 -40 -20 0 20 40 60 80 service customer poster use time shipping collage quality better product Negative Positive
  14. 18. 1.3WordCloud&SentimentAnalysis-Cards&Gifts Top 5 Positive words which customers are talking about 1. Shipping 2. Product 3. Better(context in comparison with competition, customer experience) 4. Time 5. Quality Recommendations for top 5 words with negative sentiments: On Shipping: Focus on reducing shipping costs. On Time: Timely delivery of orders. On Product: Improve delivery time, online tracking system. On Quality: focus on quality of printing on mugs, improve graphics. On Website: ease of use, design & display of products. 33 35 40 41 43 52 54 68 69 79 -9 -6 -1 -10 -3 -11 -20 -7 -14 -22 -40 -20 0 20 40 60 80 100 website options offer use easier quality time better product shipping Negative Positive Positive Words Negative Words
  15. 19. 1.4WordCloud&SentimentAnalysis-Stationery Positive Words Negative Words Top 5 Positive words which customers are talking about 1. Time 2. Shipping 3. Options 4. Better(context in comparison with competition, customer experience) 5. Product Recommendations for top 5 words with negative sentiments: On Time: Timely delivery of orders. On Shipping: Focus on reducing shipping costs. On Quality: Quality control check before shipping products. On Customer: For loyal customers, special promotions. On Options: More design options like editing, text, templates, color. 23 24 26 28 29 32 35 40 45 45 -3 -8 -3 -10 -9 -5 -4 -6 -17 -24 -30 -20 -10 0 10 20 30 40 50 allow customer offer use quality product better options shipping time Negative Positive
  16. 20. 1.5WordCloud&SentimentAnalysis-Book Positive Words Negative Words Top 5 Positive words which customers are talking about 1. Page 2. Better(context in comparison with competition, customer experience) 3. Shipping 4. Quality 5. Options Recommendations for top 5 words with negative sentiments: On Page: More page layout options like full page view for booklets. On Better: image quality, shipping tracking system. On Shipping: Reducing shipping costs. On Quality: Improvement in quality of book product like thicker cover, laminated. Check before the product is shipped. On Options: More design options like editing, text, templates, color. 47 53 60 60 74 78 80 82 99 139 -22 -23 -24 -24 -25 -30 -31 -32 -46 -50 -100 -50 0 50 100 150 add use easier product time options quality shipping better page Negative Positive