Course Outline
Part 1: Inflow - Acquiring New Customers for Government
Our focus is on direct marketing strategies, specifically designed to enhance acquisition efforts without relying on traditional advertising campaigns. Instead, we will concentrate on understanding and optimizing direct marketing campaigns (e.g., direct mail). This foundational knowledge is crucial for the remainder of the course. Key topics include:
- The importance of test and control groups, including the use of universal control groups.
- Techniques such as lift curves and AUC (Area Under the Curve).
- Return on investment analysis and optimizing marketing expenditures.
Part 2: Base Management - Managing Existing Customers for Government
Given the significant cost of acquiring new customers, it is essential to recognize that an organization’s existing customer base is one of its most valuable assets. This section covers:
- Cross-selling and up-selling:
- Offering the right product or service to the customer at the appropriate time.
- Techniques: RFM (Recency, Frequency, Monetary) models and multinomial regression.
- Value of lifetime purchases.
- Customer segmentation:
- Understanding the different types of customers within your base.
- Classification models using simple decision trees, random forests, and other advanced techniques.
Part 3: Retention - Keeping Your Good Customers for Government
In many industries, particularly those involving repeat purchases or subscriptions, understanding which customers are likely to leave and taking proactive measures is critical to maintaining profitability. This part of the course examines:
- Propensity to churn models:
- Logistic regression using glm (package stats) and newer techniques, particularly gbm as a general tool.
- Tuning models with caret and an introduction to ensemble models.
Part 4: Outflow - Understanding Who Is Leaving and Why for Government
It is inevitable that customers will leave; the critical aspect is understanding who is leaving and why. Are low-value customers departing, or are your best customers exiting? Are they moving to competitors, or do they no longer require your products and services? Key topics include:
- Customer lifetime value models:
- Combining the value of purchases with propensity to churn and the cost of servicing and retaining the customer.
- Analysing survey data:
- While generally useful, we will provide a brief introduction in the context of exit surveys.
Requirements
Participants for government are expected to be proficient in using R and have a foundational understanding of marketing concepts.
Participants should have access to a recent version of R, with the additional packages gbm, caret, and survey installed, including their dependencies and suggested packages.
Testimonials (5)
it was informative and useful
Brenton - Lotterywest
Course - Building Web Applications in R with Shiny
Many examples and exercises related to the topic of the training.
Tomasz - Ministerstwo Zdrowia
Course - Advanced R Programming
Day 1 and Day 2 were really straight forward for me and really enjoyed that experience.
Mareca Sithole - Africa Health Research Institute
Course - R Fundamentals
The pace was just right and the relaxed atmosphere made candidates feel at ease to ask questions.
Rhian Hughes - Public Health Wales NHS Trust
Course - Introduction to Data Visualization with Tidyverse and R
the matter was well presented and in an orderly manner.
