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    This document discusses various techniques for forecasting prices, including analogy, judgment-based insights, and modeling. It also covers pricing strategies like price discrimination, maximizing revenue, and setting prices based on costs, value, and other factors like product lifecycle stage and customer psychology. The rest of the document focuses on calculating customer lifetime value by looking at acquisition costs, order size and frequency, retention rates, and attrition to determine which customers are profitable over time based on their recency, frequency, and monetary spending patterns.

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    Marketing analytics

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    This document discusses various techniques for forecasting prices, including analogy, judgment-based insights, and modeling. It also covers pricing strategies like price discrimination, maximizing revenue, and setting prices based on costs, value, and other factors like product lifecycle stage and customer psychology. The rest of the document focuses on calculating customer lifetime value by looking at acquisition costs, order size and frequency, retention rates, and attrition to determine which customers are profitable over time based on their recency, frequency, and monetary spending patterns.

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    4 views2 pages

    Marketing Analytics

    Uploaded by

    andresbu92
    This document discusses various techniques for forecasting prices, including analogy, judgment-based insights, and modeling. It also covers pricing strategies like price discrimination, maximizing revenue, and setting prices based on costs, value, and other factors like product lifecycle stage and customer psychology. The rest of the document focuses on calculating customer lifetime value by looking at acquisition costs, order size and frequency, retention rates, and attrition to determine which customers are profitable over time based on their recency, frequency, and monetary spending patterns.

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    of 2

    Session 4

    lunes, 29 de enero de 2024 2:05 p. m.

    Forecasting Techniques
    • analogy( historical data)
    • Judgement- based (insights
    • Modelingg (
    ○ awarenesss= Funtction (exposure)
    Ype of prices
    ○ Availability= funtion of (reach)
    1. (Value base) Max- price = surplus }
    • Services
    2. Break even= Price- variable= unit margin = to cover fixed costs
    3. Price for profit= extra resource
    4. Based on benchmarking= competition- for mature markets- Quality signal
    Pricing:
    Thermometer

    Price discriimnation

    Max revenue
    Pricing rules
    WTP
    Abiility 1. Cost plus princing
    • Geography (ability) Price set based on variable and overhead costs by adding a markup percentage ( or
    • By effort other financial objective)
    • Demographic
    • Time of consumption

    2. Value pricing
    Value framing

    More factors to consider when setting prices

    • Stage of the PLC


    • Marketing objectives
    • Psycological aspects
    • Decisiion maker
    • Industry conditions

    Why do we care?
    Producto profitaibility Customer profitability
    Current sales >>>> Customer lifetime value
    Brand wquity >>>>> Customer equity
    Market share >>>>>> Customer equitty share

    Customer lifetime Value


    T=0 moment of acquisition, the moment when the customer buys for first time

    Prospecting cost: customer acquisition cost


    1. Prospecting Acquisition
    2. Acquisition 1 order
    a. Acquisition rate or response rate X
    i. KPI 1: order size $$ Avg order size
    ii. KPI2: Margin % X
    3. Retention Avf margin: retailers want to maximize it
    1. KPI1. order size =total contribution
    2. KP2. gros margin
    3. KPI3. frequency: purchase cycle: period of time
    4. Atrition- churn- why¡? Acquired X 1 order x Order Size= revenues
    1. Brand switching Revenues - COGS= total contribution (or gross profit)
    No more need lifestage
    2. KP2. gros margin
    3. KPI3. frequency: purchase cycle: period of time
    4. Atrition- churn- why¡? Acquired X 1 order x Order Size= revenues
    1. Brand switching Revenues - COGS= total contribution (or gross profit)
    2. No more need- lifestage Total contribution - marketing finxed cost= Net marketing costribution
    3. Satisfaction
    4. satiation

    aRE ALL CUSTOMERS PROFITABLE?

    FRM method (recency, frequency, monetary value)


    Recency- how recently did the customer purchase?
    Frequency- how often do the purchase?
    Monethary value- how much do they spend?

    Profitability through customer journey Response rate : is atractive enough (1st MOT P&G) this measure interest
    - Prospecting Retention rate: loyalty (2nd MOT P&G) this measures satisfaction
    - Acquisition 1st moment of true- 1st purchase- or TRIAL
    - Retention
    Customer relationship management
    - RFM.

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