IDEAS home Printed from https://ideas.repec.org/a/aza/ama000/y2021v7i2p144-153.html
   My bibliography  Save this article

Optimising marketing strategies by customer segments and lifetime values, with A/B testing

Author

Listed:
  • Guha, Paromita

    (Co-founder and Data Scientist, Axiomatic Data, USA)

  • Echagarruga, Christina

    (Data Scientist, Facebook, USA)

  • Tian, Eva Qi

    (Data Scientist, Vanguard Group, USA)

Abstract

Every customer has different needs and purchasing behaviour. This paper shows how data science tools such as machine learning, artificial intelligence and A/B testing enable marketers to segment their target market, identify the most loyal high-value customers and their purchasing patterns, and calculate the lifetime value of these customer segments to optimise marketing strategies and campaigns. The paper also argues that A/B testing helps marketers make unbiased data-driven decisions, making it the gold standard for identifying the best marketing strategy.

Suggested Citation

  • Guha, Paromita & Echagarruga, Christina & Tian, Eva Qi, 2021. "Optimising marketing strategies by customer segments and lifetime values, with A/B testing," Applied Marketing Analytics: The Peer-Reviewed Journal, Henry Stewart Publications, vol. 7(2), pages 144-153, September.
    • Handle: RePEc:aza:ama000:y:2021:v:7:i:2:p:144-153
    as

    Download full text from publisher

    File URL: https://hstalks.com/article/6578/download/
    Download Restriction: Requires a paid subscription for full access.
    File URL: https://hstalks.com/article/6578/
    Download Restriction: Requires a paid subscription for full access.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    predictive analytics; customer; segmentation; lifetime value (LTV); experimentation; A/B testing;
    All these keywords.

    JEL classification:

    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aza:ama000:y:2021:v:7:i:2:p:144-153. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henry Stewart Talks (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.