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Our World Statistics Day conversations have been a great reminder of how much statistics can inform our lives. Do you have an example of how statistics has made a difference in your life? Share your story with the Community!
Oct 6, 2020 9:23 PM
| Last Modified: Oct 6, 2020 9:23 PM(153 views)
Hello JMP Community,
I am a data analyst and trying to use JMP DOE capability to support marketing partners with a marketing campaign. Campaign details are below, and my questions are:
Based on the campaign details, is my understanding of DOE wrong? I am hoping to go beyond simply basic A/B testing and maybe for a campaign like this A/B testing is the way to go while DOE is for more complex situations.
If DOE can be applied to this real-life business problem, how should I go about successfully implementing this? I would appreciate it if there are more details as I am new to JMP DOE capability while trying to learn it quickly too.
Campaign Details: (All this is nicely represented in the attachment "test Plan".)
A marketing campaign to incentivize non-loyalty members to join the loyalty program.
An email will be sent to almost 2 million customers. The content of the email is educational with a $ coupon.
The test is to see which email creative does better. A long version or a short version of the creative. In the short version, there is an additional layer of test, the CTA.
I also decided to have a 10% hold-out group to see the overall impact of the campaign.
The success of the campaign will be decided by:
Maximum members join the loyalty program (using hold-out group)
Which creative version did better? Then use that creative in future communications
Which CTA did better? Then use the CTA in future communications.
This is a rather large topic. I don't know your current level of understanding experimental design? Have you researched conjoint analysis and Choice Designs? There are MANY case studies applying DOE successfully in marketing!
1. It looks like a one factor experiment (OFAT) where the factor is the length of the creative. The diagram you attached appears to be a nested study. Typically, DOE is used to investigate a number of factors (2≤#≤15) and their possible interactions. The intent is to create variability in the response by manipulating factors at bold level settings. Setting the variables at bold levels exaggerates the factor effects thus making it easier to determine the relationships between the factors and the response(s).
2. Others may argue, but in experimentation, there is no need for a "hold out" group. As long as current levels are included in the study, this is not necessary as a comparison to current is embedded in the study.
3. You are proposing a huge sample size. This is also not typical of experimentation. In experimentation you increase the inference space by manipulation for factors and by blocking (or other similar techniques) for noise. I would suggest you start on a much smaller scale to understand more what affects the decision to join any loyalty program. As part of a sequential strategy, first screen from a large set of potential factors, then iterate on those factors to determine optimum settings.
4. Suggestions include developing more specific hypotheses as to what would and would not impact persons joining the loyalty program. It seems there are lots of possibilities (e.g., amount of $ coupon, other financial benefits, other perks/promotions/incentives, design of the email (font, graphics, colors, animation, sound), etc.).
5. There are also additional responses you may be interested in. Do you care how long they stay in the loyalty program? Are you concerned with the possible negative reaction from those that are already in the loyalty program (Where's my coupon?). The proposed metric appears to be categorical (nominal). Create an ordinal scale for the response.
6. Perhaps you should start with :
A look at historical data for loyalty program membership (regression could be quite useful here) to generate more hypotheses
A sampling plan. If you are going to have such a huge data set, why not sample to get some clues about what drives human behavior to join a loyalty program. This may also helping determining whether measurements systems are adequate and clues as to how to handle non-response.