PROJECT 5: Marketing Promotion Analysis
Business Request & User Stories
This project is about Data Visualization using Power BI with Marketing Promotion Data. It explains the visualization approaches that the Marketing Manager would want to see and it also provide insights in a simple manner.
Request For The Marketing Promotion Analysis
Dear Data Analyst
We need your expertise to develop a dashboard for our “Marketing Promotion Analysis” that displays our key performance metrics for informed decision-making.
Requirements
Create a visualization to analyse;
* Conversion % By Channel
* ROI by Channel
* ROI by Offer
Design & Aesthetics: Use our company colors and ensure that the dashboard is easy to navigate.Data Source: Access to our databases will be provided.
Deadline: We need a preliminary version ASAP.
Please provide an estimated timeline for completion and recommendation based on the insightts and key-learnings deduced from the analysis
Best regards,
Project Overview:
The primary goal of this analysis is to uncover insights that can inform strategic decisions aimed at optimizing marketing promotion campaigns. By understanding and addressing key factors, businesses can improve their marketing effectiveness and overall campaign performance.
Objectives:
- Promotion Effectiveness: Evaluate the effectiveness of different marketing promotion campaigns.
- Customer Behavior Analysis:Understand customer behavior in relation to promotions, including discount usage and conversion rates.
- Channel Performance:Analyze the performance of different marketing channels.
Key Metrics:
- Recency: Number of days since the last purchase.
- History: Historical purchase amount.
- Used Discount: Whether a discount was used (1) or not (0).
- Used BOGO (Buy One Get One): Whether a BOGO offer was used (1) or not (0).
- Zip Code: Geographical location categorized into areas such as Surburban, Rural, etc.
- Is Referral: Whether the customer was referred (1) or not (0).
- Channel: The channel through which the promotion was delivered (Phone, Web, etc.).
- Offer: Type of offer given (e.g., Buy One Get One, No Offer).
- Conversion: Whether the customer converted (1) or not (0).
The project workflow is explained below;
1. Data Collection
2. Data Preparation
3. Data Modelling
4. Data Analysis
5. Data Visualization
6. Insights & Key-Learnings
1. Data Collection
2. Data Preparation
3. Data Modelling
4. Data Analysis
Recency(Last 4 Month)
Conversion%
ROI
5. Data Visualisation
6. Insights & Key-Learnings
Recommendations:1.Focus on High-Performing Channels:Insight: Multi-channel has the highest conversion rate (17.2%), but the web channel has the highest ROI ($112,000).Recommendation: Increase investment in the web channel to leverage its high ROI. Additionally, continue to promote multi-channel approaches to maximize conversions.2.Enhance Discount Offers:Insight: Discount offers have the highest conversion rate (18.3%) and the highest ROI ($97,000).Recommendation: Prioritize discount-based promotions. Consider offering targeted discounts to high-potential segments to drive conversions further.3.Improve BOGO Offers:Insight: BOGO offers have a lower conversion rate (15.1%) compared to discounts but still significant usage (35,000).Recommendation: Evaluate the structure and appeal of BOGO offers. Test variations of BOGO to improve their attractiveness and conversion rates.4.Increase Promotion Efforts in Low Conversion Channels:Insight: The phone channel has the lowest conversion rate (12.7%) and relatively high ROI ($89,000).Recommendation: Investigate potential barriers in the phone channel. Provide training to sales representatives, refine call scripts, and improve customer interactions to boost conversions.
5. Maximize ROI by Optimizing Offer Types:Insight: Offers with no promotions have the lowest conversion rate (10.6%) and the lowest ROI ($57,000).Recommendation: Minimize the use of no offer promotions unless targeting highly loyal customers or testing specific scenarios. Focus on promoting discount and BOGO offers.6. Monitor Recent Trends:Insight: The conversion rate over the last four months has increased to 17.5%.Recommendation: Analyze the recent campaigns and strategies implemented in the last four months. Identify successful elements and replicate these in future campaigns to maintain or improve the higher conversion rate.Conclusion:By leveraging these insights and implementing the recommended strategies, the business can optimize its marketing promotion campaigns to achieve higher conversions and better ROI. Continuous monitoring and analysis of campaign performance will help in making data-driven decisions, ensuring that the marketing efforts remain effective and aligned with business goals.