DEPARTMENT: Apex Institute of Technology

(MBA)
Subject Name- Marketing Research and
Analytics
Subject Code: BBB-714 / BHB-714 / BFB-714
Faculty Name & Emp ID: Mr Pawan Kumar E7027 /
Ms Sonika Kanojia E7777

Marketing Research & DISCOVER . LEARN . EMPOWER

Planning
 Marketing Analytics
Agenda of Chapter II_Unit II: CLV
1. Process of Marketing and Outcomes of Marketing
2. Brand Personality and Architecture (AAKAR Model)
3. Practice: Defning brand architecture and Personality
4. Customer Life Time Value Concept and Calculations
5. CLV Numerical Practice
6. Customer Acquisition Funnel
7. Customer Acquisition Funnel Numerical Practice
8. Multichannel Marketing: Funnel Comparisons
9. Marketing Situations and Decisions
10. Case Study: CLV and Funnel
11. Case Study: CLV and Funnel
12. Case Study: CLV and Funnel

2
Marketing Analytics
Customer Acquisition Funnel

How do we Acquire a
Customer

?
Marketing Analytics
Customer Acquisition Funnel

Customer
Acquisition
Funnel
Marketing Analytics
Customer Acquisition Funnel
Marketing Analytics
Customer Acquisition Funnel: Credit Card Process
Marketing Analytics
Customer Acquisition Funnel: Credit Card Process

Impressions
Marketing Analytics
Customer Acquisition Funnel: Key Concepts
Advertising means Creating Impressions
View of an advertisement is called Impression. It shows
how many times an advertisement is viewed

Depends on Reach (Number of people

advertisement is able to reach) and Frequency
(Number of times an individual is exposed to Ad)

Impressions = Reach * Frequency

Marketing Analytics
Customer Acquisition Funnel: Key Concepts

Hit Rate: What percentage of Impressions

are converted into sales

= Enquiries * Qualifcation Rate *

Conversion Rate

Sales: How many customers buy the

product

= Hit Rate * Impressions

Marketing Analytics
Customer Acquisition Funnel: Key Concepts
Sales ‘Lift’
Incremental sales due to advertising. It is
expressed as percentage of baseline
(without Ad) sales.

For example, sales of i20 Cars without Ad

campaign were 1,00,000 cars per year and
after campaign sales went up to 1,20,000
per year

Lift = (120000 – 100000) / 100000 = 20%

Marketing Analytics
Customer Acquisition Funnel: Hit Rate
Calculate Hit Rate for diferent Media Channels

Hit Rate: What percentage

of Impressions are
converted into sales

= Enquiries * Qualifcation
Rate * Conversion Rate
Marketing Analytics
Customer Acquisition Funnel: Hit Rate
Calculate Hit Rate for diferent Media Channels

Media Hit Rate

Direct Mail 1.53%
Take Ones 0.6%
FSIs 0.4%
Direct Sales 12.75%
Branch Sales 38.25%
 Marketing Analytics
Customer Acquisition Funnel: Hit Rate
Calculate Sales made through diferent Media
Channels
Media Hit Rate
Direct Mail 1.53% Which is
Take Ones 0.6%
better
media to
FSIs 0.4%
Direct Sales 12.75%
Branch Sales 38.25% invest in?
 Marketing Analytics
Customer Acquisition Funnel: Hit Rate
Calculate Sales made through diferent Media
Channels
Media Hit Rate Sales: How
Direct Mail 1.53% many
Take Ones 0.6% customers
FSIs 0.4% buy the
Direct Sales 12.75% product
Branch Sales 38.25%
= Hit Rate *
Impressions
 Marketing Analytics
Customer Acquisition Funnel: Hit Rate
Calculate Sales made through diferent Media
Channels
Media Hit Rate Sales
Direct Mail 1.53% 38250
Take Ones 0.6% 12750
FSIs 0.4% 13387
Direct Sales 12.75% 7650
Branch Sales 38.25% 19125
 Marketing Analytics
Customer Acquisition Funnel: Hit Rate
Calculate Sales made through diferent Media
Channels
Media Hit Rate Sales
Direct Mail 1.53% 38250 Which is
Take Ones 0.6% 12750
better
media to
FSIs 0.4% 13387
Direct Sales 12.75% 7650
Branch Sales 38.25% 19125 invest in?
 Marketing Analytics
Customer Acquisition Funnel: Hit Rate
Calculate Sales made through diferent Media
Channels
Media Hit Rate Sales
Direct Mail 1.53% 38250 Which is
Take Ones 0.6% 12750
better
media to
FSIs 0.4% 13387
Direct Sales 12.75% 7650
Branch Sales 38.25% 19125 invest in?

What about Cost of Media?

Marketing Analytics
Customer Acquisition Funnel: Hit Rate
Assume Gross Margin per Sale to be INR 1000

Media Hit Rate Sales Media Cost

INR 0.5 per
Direct Mail 1.53% 38250
Email
Take Ones 0.6% 12750 INR 1 per TO
FSIs 0.4% 13387 INR 1.5 per FSI
Direct Sales 12.75% 7650 INR 50 per call
Branch Sales 38.25% 19125 INR 75 per BCS

Which is better media

to invest in?
Marketing Analytics
Customer Acquisition Funnel: Hit Rate
Assume Gross Margin per Sale to be INR 1000

Hit Total Media

Media Sales Media Cost
Rate Cost
Direct INR 0.5 per
1.53% 38250 12,50,000
Mail Email
Take
0.6% 12750 INR 1 per TO 20,00,000
Ones
FSIs 0.4% 13387 INR 1.5 per FSI 52,50,000
Direct 12.75% 7650 INR 50 per call 30,00,000
Sales
Branch
38.25% 19125 INR 75 per BCS 37,50,000
Sales
Marketing Analytics
Customer Acquisition Funnel: Hit Rate
Assume Gross Margin per Sale to be INR 1000

Hit Media Total Media Returns

Media Sales Net Proft
Rate Cost Cost (GP*sales)
Direct INR 0.5 per
1.53% 38250 12,50,000 3,82,50,000 3.70,00,000
Mail Email
Take INR 1 per
0.6% 12750 20,00,000 1,27,50,000 1,07,50,000
Ones TO
INR 1.5 per
FSIs 0.4% 13387 52,50,000 1,33,87,000 81,37,000
FSI
Direct 12.75 INR 50 per
7650 30,00,000 76,50,000 46,50,000
Sales % call
Branch 38.25 INR 75 per
19125 37,50,000 1,91,25,000 1,53,75,000
Sales % BCS
Marketing Analytics
Customer Acquisition Funnel: Hit Rate
Assume Gross Margin per Sale to be INR 1000

Hit Media Total Media Returns

Media Sales Net Proft
Rate Cost Cost (GP*sales)
Direct INR 0.5 per
1.53% 38250 12,50,000 3,82,50,000 3.70,00,000
Mail Email
Take INR 1 per
0.6% 12750 20,00,000 1,27,50,000 1,07,50,000
Ones TO
INR 1.5 per
FSIs 0.4% 13387 52,50,000 1,33,87,000 81,37,000
FSI
Direct 12.75 INR 50 per
7650 30,00,000 76,50,000 46,50,000
Sales % call
Branch 38.25 INR 75 per
19125 37,50,000 1,91,25,000 1,53,75,000
Sales % BCS
 Marketing Analytics
Summary
1. Marketing Funnel
2. Diferent options of Marketing Acquisition
3. Hit Rate and Conversions
Marketing Analytics
Brand Architecture and Brand Personality

Retention Rate

?
Discount Rate: “CLV is always the NPV (net present
value) of the sum of all future revenues from a customer, minus all costs
associated with that customer.”

Acquisition Funnel
Media Selection Options
Excel Model for CLV

https://www.youtube.com/watc
h?v=UE-E5DFeF3o