RESEARCH RESPONSE RATE: GAINS CHART

– Another common way of viewing this same data is Gains Chart

– Chart in next slide shows that response rates are going up as you move up
the income rankings
– At what income level you should use as a cut-off for future target
audiences?
– To do that, Reverse the order of the deciles
– Plot the percentage of responders that fall into incomes above each
successive decile – in a cumulative way
– A gains chart is shown in the next slide

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD

 • Gains chart of responses by
income decile (reverse ranked
in cumulative fashion)
• Chart shows after Income
level 4, there is no significant
increase in Response rate (cut
off for future campaigns)

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD

What are Data Variables?
THE CORE OF MRA

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD
VARIABILITY: WHY IT MATTERS?

The actions that marketers take and the

corresponding effect in consumers

An increase of marketing budget by 10%,

will result in
increase in consumer acquisition by 50 additional consumers

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD

WHAT ARE STATISTICAL VARIABLES?

–A probable measurement of something

–A summary of multiple measurements

–A computed outcome of measurements

What has this got to do with Marketing?

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD

STATISTICAL VARIABLES: MARKETING RESEARCH

– A probable measurement of something

– Will this customer respond to our campaign?

– A summary of multiple measurements

– How did the customer responded to past campaigns?
– Is there a past purchase trend of this customer?
– All those parameters that tells this customer is a potential

– A computed outcome of measurements

– What is the customer satisfaction index of this group?
– How the Net Promoter Score trending?
– Is the credit score sound to make an offer?

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD

YOU WILL NEED A GEEK

• Geek will help you in identifying the right group

among your customers, check statistical
significance and confidence levels of your
campaign results
• In this class, we introduce you to key concepts
that helps you to deal with the geek, and ask the
right questions they could understand

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD

UNDERSTANDING VARIATIONS IN DATA

–What are Customer traits?

–How these traits vary from customer to customer?

–Statisticians call these ‘Variables’

–Examples: Customer Age, Household Income, # of

Children, date of last purchase – are variables
INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD
WHAT VARIATIONS MATTER?

– If you have saved 10 Lac Rupees and

considering to invest in stock market.

– Do you really care if Sensex is 20,000 pts

or 30,000 pts?

– What you really care is ‘if it is going up

or down’?

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD