Introduction
ANLY FPX 5510 Assessment 4 The marketing unit of a leading finance company saw its budget fall recently. Therefore, the department went to consult the analytics team on how it could maximize the budget and lower wastage in calling customers many times, especially those who could be less interested in the firm’s service.
Cluster Analysis
The initial solution was created based on cluster analysis, which utilized information regarding whether or not customers were targeted through various communication channels such as telephone, email, Facebook, Twitter, Instagram, Pinterest, Yahoo, Google search, and U.S. Postal Service mail. The aim of the analysis was to arrive at customer clusters with similar behavior and interests, thus enabling the organization to focus its marketing efforts. The decision was reached that the business would keep up its marketing campaigns via telephone, mail, and Google but abandon all other ways.
Decision Tree Analysis
The second solution included conducting a decision tree analysis. Like the cluster analysis, the technique compared customer engagement-related information via telephone, email, Facebook, Twitter, Instagram, Pinterest, Yahoo, Google search, and U.S. Postal Service mail. Apart from that, it also incorporated demographic data and overall deposits within the past one-year time frame per customer. Its primary purpose was determining the behavior of high-deposit clients so that it could develop direct marketing to target those characteristics. What came out was the decision that the company should continue selling via Instagram for customers who were under the age of 43, and against reaching the customers from the age group 56-80 because they had low levels of deposits deposited in the last year.
Recommended Solution
The recommended solution to solve the business problem is the first solution, cluster analysis. This technique focuses on the effectiveness of communication channels rather than customer demographics. It evaluates several advertising channels such as telephone, email, Facebook, Twitter, Instagram, Pinterest, Yahoo, Google search, and U.S. Postal Service mail in order to determine the most effective channels and omit the wasteful ones, hence saving the company’s cash resources. In contrast to the decision tree analysis, which is concerned with the exclusion of specific age groups from marketing strategies based on the characteristics of customers, cluster sampling takes advantage of different advantages, including that it is cheaper than other methods and enables the coverage of enormous sample sizes in specific areas, thereby allowing the organization to gain relevant information (Money, 2019).
Implementation
Implementation of analytics within an organization is a continuous process and not a one-time event. As the firm develops to address customer, product, and operational needs, intelligence derived from analytics will become increasingly important. Implementation of cluster analysis will be a centralized process, wherein all applicable assets—e.g., software, hardware, expert personnel, metadata, and project management resources—are controlled by a single department. This centralized strategy brings with it many advantages, like better knowledge sharing, consistency of implementation, and cost-effectiveness through shared hardware and software (Sheikh, 2013). The initial step will involve presenting the relevant processes and data pertaining to cluster analysis, and subsequently, the team will undergo training. Afterwards, engagement, project management, and development structures will be instituted prior to actually starting real projects to generate value. Ongoing monitoring of the cluster analysis will aid in its effective execution.
Benefits
ANLY FPX 5510 Assessment 4 The proposed solution is trying to minimize communication by identifying the most favorite delivery modes by customers. The central elements of target group, product or service, and corresponding costs are at the forefront of determining the best advertising media channels. One of the primary principles of advertising is not to waste resources; thus, selecting media with the largest audience is vital. Advertising spending that elicits a very large audience may fail if most of that target audience does not have the potential to purchase the item (The Inc., 2018). Eliminating useless advertisement allows the company to conserve funds through a focus on marketing channels directed to interested customers. Inappropriate advertisement choices will use up the funds and burn scarce resources, further highlighting the requirement for good-quality decision-making within the limitations of a small budget.
References
Money Matters (2019). Cluster sampling | Definition | Advantages & Disadvantages. Retrieved from https://www.inc.com/encyclopedia/advertising-budget.html
Sheikh, N. (2013). Implementing analytics: A blueprint for design, development, and adoption. Waltham, MA: Morgan Kaufmann.
ANLY FPX 5510 Assessment 4 Presenting Advanced Analytics to Executives
The Inc. (2018). Advertising Budget: Tips on budgeting and negotiating, plus promotional tools for advertising. Retrieved fromhttps://www.inc.com/encyclopedia/advertising-budget.html
