Context of Project

Background

Maven Cafe conducted a 30-day promotional test, targeting existing rewards members with diverse promotional offers to enhance our understanding of customer preferences and refine our marketing strategies, ultimately improving customer engagement and loyalty.

Objectives

The primary objective of this project is to:

• Identify key customer segments by analyzing the promotional response data.
• Develop a data-driven strategy for tailored promotional messaging and targeting, aimed at optimizing future marketing campaigns.

Audience

The findings and recommendations will be reported to the Chief Marketing Officer (CMO).

Data Source

Cafe Rewards Offers from Maven Analytics.

Tool

Big Query, Excel.

Report

Analysis of Maven Cafe Promotional Campaign

0 Overall Framework

1 Demographic Profile of Maven Cafe Customers

In this section, I explore customer demographics, analyzing the distribution of customers by gender, age, income, and membership start year.

1.1 Segmentation Rule for Different Age Group

To accurately tailor our marketing strategies and better understand our customer base, I segmented customers based on following age groups:

Young Adults (18-24 years):Characteristics: College students or early-career individuals, prefer affordable and trendy specialty drinks, active on social media.Focus: Specialty drink promotions, loyalty programs, social media campaigns.

Adults (25-34 years):Characteristics: Young professionals, possibly starting families, with disposable income, interested in high-quality, sustainable options.Focus: Premium offerings, subscription services, environmentally friendly choices.

Mid-Age Adults (35-54 years):Characteristics: Established professionals, value convenience, quality, and a comfortable atmosphere.Focus: Quality and consistency in products, comfortable environment for family and business.

Seniors (55+ years):Characteristics: Pre-retirement or retired, value leisure, health-conscious, prefer classic and decaf options, and a quieter atmosphere.Focus: Discounts for seniors, availability of health-conscious and decaf options, a calm and quiet environment.

1.2 Relevant Analysis and Conclusion

2 Analysis on Promotional Campaign Funnel

In this section, I outlined the workflow of the campaign and calculate the conversion rates at each stage within the campaign funnel.

Relevant Analysis and Conclusion

3 Analysis on Offer Received Stage

Based on the user funnel outlined above, I will now analyze the performance at each stage, starting with the initial phase: the offer received stage.

Relevant Analysis and Conclusion

4 Analysis on Offer Viewed Stage

Now let's dive into offer viewed stage.

4.1 Data Processing

Problem: When calculating the time interval between receiving and viewing offers, a user may receive the same offer multiple times.

Solution: Assume the offer viewed corresponds to the most recently received one prior to the viewing.

4.2 Relevant Analysis and Conclusion

5 Analysis on Offer Completed Stage

5.1 Data Processing

Problem: When calculating the time interval between viewing and completing offers, a user may complete the same offer multiple times.

Solution: Assume the offer completed corresponds to the most recently viewed one prior to the completing.

5.2 Relevant Analysis and Conclusion

6 Analysis on Transaction

Relevant Analysis and Conclusion

Key Customer Segments

• Gender Distribution: Male customers slightly outperformed female customers.
• Age Group: Predominantly attracts older customers, aged 55 and above.
• Income Bracket: Customers generally have moderate to middle-high incomes, ranging from 50,000 to 79,999.
• Membership Engagement: Members who joined in 2016 and 2017 show the highest engagement levels in this campaign.

Key Strategies for Enhanced Promotional Campaigns

1. Optimize Offer Types

Continuously refine BOGO and discount offers using customer feedback and performance data. Prioritize discount offers due to their higher sales impact.

2. Expand Multi-Channel Distribution

Utilize a variety of platforms including social media and mobile to reach a broader audience and track channel effectiveness.

3. Enhance Timing and Content Customization

Optimize offer timing with immediate notifications and tailor content to the preferences of your main customer segments to boost engagement.

4. Targeted Marketing

Tailor marketing messages to resonate with the preferences of older, middle-high income adults and strengthen loyalty programs for members engaged since 2016.