Direct Marketing Data Analysis

Our Approach
Understanding the Data Analysis using Statistical Tools

Making Recommendations

Drawing Inferences

Our Goals
Our consultation aims to help achieve the following business goals

Increase Revenue Expand existing customer base (both acquisition and retention)

Identify problem areas ( and propose solutions for them)

Capitalize on untapped opportunities

Data Comprehension
No of Customers
303 494 697 506

No of Customers

New

Existing

Male

Female

No of Customers

No of Customers
290 710

502

498

Unmarried

Married

Close

Far

Data Analysis

Observations
Overall, increase in revenue over last year has been 64.3% If we filter down to just the exiting consumers, the increase in revenue comes out to be 13.8% The company seems to be getting adequate revenue from new clients. They should tap these consumers as a potential segment. 64.3%
0.38

0.74

0.84

Prev Year
Existing

This Year
New

AUD Millions

Observations
Revenue Segmentation based on Salary

81% of revenue generated comes from 65% of population Salary between $ 40,000 and $ 1,20,000 As the salary/income of a family decrease, we observe a decline in the amount spent. Targeting this audience with enticing promotions is likely to change the trend.
9% 4% 20%

26% 21% 14%

5%

1%

Observations
The amount spent by a consumer is directly proportional to the number of catalogues he/she receives Correlation value of 0.473 between Amount Spent and No of catalogues
35%
Catalogues sent & Revenue

13%

R-Square = 0.71, Coefficient = 42.71, value ~ 0

p-

24%

More aggressive the direct marketing campaign, higher the revenue generated. Since this seems to be the only marketing activity to draw reference from, the company should increase the number of catalogues sent to potential segments (after considering the costs involved).
6

29%
12 18 24

Observations
Married population contributes 69% of the total revenue as opposed to singles, who contributes a 31% share. For the married couples, the combined income data is likely to influence the higher salaries and further, the higher amount spend. Revenue & Marital Status
31% 69%

Unmarried

Married

Observations
As stated before, total increase in revenue is 64.3% New Consumers: 50.5% Existing Consumers: 13.8% However, average number of catalogues sent per consumer is slightly higher for existing consumers. While the significance of client retention cant be overstated, it could prove hazardous to overlook the potential of client acquisition, as a majority of increase in revenue is coming from latter.
Marketing Effort across Customer Base

13.7

15.11

Existing

New

Average Catalogue sent per consumer

Observations
Out of the 697 existing consumers the revenue from 294 consumers decreased over last year, thus a change in approach is required for the segment. 294
Revenue Decreases

697

Correlation value of 0.535 between Amount Spent and Previous Spent

R-Square = 0.71, p-value ~ 0 403

Last Year

Revenue Increases This Year

Opportunities

Correlation value of -0.222 between Amount Spent and Number of Children. R-Square = 0.71, Coefficient = -203.47, pvalue ~ 0 Revenue generated is inversely proportional to number of kids in family. The company can tap the segment by introducing lucrative offers related to kids products. The company should aim to maintain a balance between consumer acquisition and consumer retention. It might be a good idea to approach both segments with different marketing strategies. The existing clients could be offered loyalty bonuses whereas, new consumers could be brought on-board by offering newbie discounts.

No of Children
1,407 1,220 941 831

Threats
It is observed that people living in vicinity of similar shops tend to spend $ 535 less per person on an average as compared to consumers who live In the middle of Nowhere.
Close

1,062 1,596 Far

50%

It is likely that these consumers have other options to choose from, which results in a decrease in average amount spent on this company

Methodology
Correlation Regression Analysis Descriptive Analysis Pivot Table Analysis

Thank You