This paper focuses on helping CRM and analytics managers choose the analytic approaches and tools that best match an organization's readiness to receive and use them. CRM and analytic leaders often believe that complex value models and sophisticated statistical techniques yield superior results. However, experience shows that companies generate more business impact by deploying simple analytical approaches, particularly when relatively new to CRM and customer analysis. This enables executives and front-line employees to understand customer-centric approaches and builds the foundation for more complex approaches at a later stage in development. CRM and analytic managers play a critical role as companies implement CRM and other customer-centric projects. By understanding the organization's key business issues and assessing readiness for a customer centric approach, technical managers can tailor analytics to maximize understanding. Comprehending that simpler tools and models can often lead to better business results is a powerful, if somewhat counterintuitive, concept.
The presentation focuses on the use of marketing experimental techniques by most of the Major United States grocery and drug product companies. It will be based on over 100 marketing experiments and simulations. fhree significant improvements in accuracy developed through careful data analysis including the following: 1. Improving the accuracy through greater product exposure control; 2. Using individually paired stores instead of balanced panels of stores; 3. Evaluating the data in matched panels with co-variance analyses instead of using base period data for comparing the data. Basically, the experimentation involves tight control over the marketing variables coupled with the careful statistical analysis. Simulation is replacing testing. Experimentation is applied to pricing, packaging, merchandising, and advertising decisions. The experimental approach is producing definitive and actionable marketing intelligence and predictions. The management value of the research is also quantifiable in this type of study a significant breakthrough.
One of the sacred institutions of American grocery and drug product marketing today is the test market. Virtually no products ai-e extended to national distribution and placed into major product runs without extensive test market ing experience. The high cost of marketing failures have made this s corner stone of today's marketing plans. Yet, the test market has not been an unqualified success. Often, managements are faced with a difficult series of decisions after examining test marketing results as virtually existed prior to the test marketing effort.