Image for post
Image for post

Customer Journey Analytics will make you more money.

Do you want to increase revenue and marketing ROI from your e-commerce platform? If yes, this is the article for you.

  1. What are their unique characteristics?
  2. How can we adapt the marketing strategy concerning buyer personas to increase marketing ROI?
  3. How accurately can we predict buyer persona from the first customer purchase transaction?

Dataset

As most of the companies keep data related to customer journeys confidential, the use case will be demonstrated on Google Analytics Sample Dataset.

How many buyer personas do we have?

It is not an easy question. What are the criteria to segment buyer personas? One approach is to compare customers using RFM analysis answering questions such:

  • How often do they buy (Frequency)?
  • How much do they spend (Monetary value)?
Image for post
Image for post
  • cluster 2 has the highest recency 273 days, low frequency 1, most probably representing “customer churn”
  • cluster 3 has the lowest recency 87 days, low frequency 1, representing “new customers”
Image for post
Image for post
Frequency and monetary have been transformed using natural logarithm (ln) due to highly skewed distributions.

What are the unique characteristics of buyer personas?

The profiling stage involves describing the characteristics of each buyer persona (cluster) to explain how it may differ in relevant dimensions as demographics, consumption patterns and behaviors. These are the variables not included in cluster analysis.

Image for post
Image for post
Image for post
Image for post
Image for post
Image for post

How can we adapt the marketing strategy?

This is how it may look like in case of the results above…

How accurately can we predict a buyer persona?

An effective marketing strategy is all about the personalization in branding and offerings.

Call to action

Have you ever done customer journey mapping? If not, maybe this is the time to start. “Why” was justified, “How” can be found here.

Principal Data Scientist

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store