personalized conversation sales

 personalized conversation sales

Introduction

In modern society today, people have been exposed to a variety of modes of communication as a result of continuously increasing technologies. One of the methods of communication that have gained a lot of popularity and usage among individual people and the organization is the use of email. According to YYY, the volume of email is growing at a faster speed compared to other forms of communication. These scholars explain that by the end of 2016, the total number of email users was 2672 million people globally. As such, email has emerged as one of the most important forms of marketing.

A research conducted by XXX explains that personalized conversation sales account for the highest sales most companies in various markets are recording in recent years. E-commerce firms like eBay, Amazon, among others, have come up with personalized conversational sales agents who are tasked with the duty of communicating and engaging customers to make their purchase or do a repurchase. Again, XXX explains that the use of email marketing is very critical for an organization, particularly when they are facing stiff competition within their market. One of the benefits of using email marketing is that it helps to increase the brand awareness of the organization. In addition, it helps to its cost-effective compared to other forms of marketing and engagement of workers. Another advantage of these forms of marketing is that it helps to convert more potential customers to make their first purchase due to personalized communication with which to offer its user.

According to XXX, for an organization to successfully implement and enjoy the fruits of using email as a sales and marketing technique, it must ensure that its personalized conversational sales use a particular system. Different systems are used by various organizations to engage their customers after leaving the websites. One such method is an on-site recommendation system which focusses on generating the most relevant products or services to the customer at a particular moment through an email recommendation. As such, organizations must choose who to send proposals to and when an item should be sent to them. It is vital that a firm, through its management, not to send too many emails to the potential and the existing customers within a short time as they are perceived as scammers, and the customers will eventually unsubscribe from them. Therefore, to determine the possibility for customers to respond to a particular email, the sales and marketing time charge with sending the mail must give customers time to read and respond. XXX asserts that to increase the total number of conversion by 50% while at the same time decreasing the amount of email sent, they must always give customers enough time to read and respond to one email at a time.

The other system that some companies are using to engage their customers or market their product through email is an offline recommendation. XXX explains that offline recommendation is much complicated compared to the online proposal because they bring two additional factors that must be considered in their application. The first dimension brought by the offline recommendation system is getting the right user. This system requires the organization to identify the correct use of a given product or services to gain their interest in purchasing a given product. The other dimension is finding the right time to send the emails such that customers will open it and respond by either inquiring more about the product or service or making a purchase.

By looking into the above-discussed systems and how they work, they give insight into a recommendation to come up with an order or model that can be used to optimize the effectiveness of a model that can generate high-quality recommendations to the customers. The system would ensure that the recommendation successfully re-engages both online and offline users as opposed to the other systems that only engage either online or offline users. This means that the method proposed to build by this study would combine the online, offline, and real-time recommendation system into one to offer the most reliable email sales and marketing strategy. Just as proposed by XXX, email recommendations should be optimized in ways that emails are sent to the right person and also at the right, and this proposed system will ensure that all such requirements are met. This scholar further states that an organization must ensure that the emails are sent to the customers at the appropriate time when they will appreciate the information communicated to them rather than find them annoying. Thus, this program will ensure that email is sent at a particular time that the customers can read them and find them attractive.

A study by XXX explains that enhancing responses of potential customers by email, it is essential to do an email campaign by comparing data mining segmentation methods any using technology non as Hubspot. This technology helps to send mass emails to particular people based on the relevance of the items or service to them. Furthermore, determining the major factors affecting the response rate in the email also help to increase the number of response rate among potential and current customers to inquire and purchase a given product.

The response rate model further stipulates that three primary stages must be followed to ensure that there is effective e-mail marketing. The first step is getting the receiver of the email to open it and read the information. This step is significant because the next actions rely on its since without reading the report, the recipient will not respond to the company. The next step is holding the recipient’s interest in the recommendations, and the last step is persuading the recipients of the email to respond. According to XXX, there is a direct correlation between the customers’ response rate to various factors such as; the length of the email, number of images used in the document or email sent, and incentives.

Another study by XXX found out the Saeedi et al. (2012) there is a close relationship between the internet marketing and success of a business enterprise or corporation. This study further asserts that the right number and correct email is essential to increase the success of an organization. When customers get the right message, their perceptions of a given product or knowledge about a particular product, thereby allowing the customer to know more about the product, thus making a purchase. Besides, the use of email marketing help to strengthen the relationship, trust, and loyalty of the customers to the organization. XXX stated that email marketing is a perfect means of building one-on-one trust and contact with the existing customers. Sending an email to current or potential customers helps them to engage the sales agent who clarify for how the product is used, its benefits, and possible side effects. As a result, they feel that the organization is transparent and cares about their health and needs; hence they form a good relationship with the organization. Consequently, the right` customers’ contact and trust with the organization will lead to increased brand awareness, thereby helping an organization to stay top in its industry.

1.1 Problem Statement

“The number of messages that Company XX is sending to its customers has increased significantly in the last quarter. Comparing Q4 2019 with Q4 2018, the number of commercial messages increased by 36%. However, customers are interacting less with these messages, which leads to lower open rates, click-through rate, conversions, and poor customers’ experience.”(Colleague X, 2020)

When sending too many emails, it may annoy customers, which results in unsubscription. Again, when sending emails that are not sufficiently interesting to the end-user will result in reputational harm for the sender. Besides, when the system sends too many emails to a particular email service provider will lead to the risk of spamming and blacklisting; when sending many emails without a reasonable response rate is a waste of resources of utilizing the platform.

Customer Problem We Aim to Solve

• Demolishing the current customer selection based on a ranking system: Plus, VIP, A, B, C, by building the new hypothesis based on the performance: response rate.
• Sending the Wishlist Price Cut to customers who can be persuaded, who have a higher probability of having the interest, of engaging and buying, by utilizing the historical customer data.
• Avoiding irrelevant communication when the customer is doubtful to purchase the item

Literature Review

Target variable and features

Today, customers in almost all sectors of the economy are actively looking for personalized customers’ experience from the business organization. According to XXX, targeted email marketing is the most appropriate way of attracting the most relevant customers by ensuring that the emails they get are very relevant to their wants. However, as stipulated by XXX, in email marketing, an organization will only estimate the impacts of the email by determining the amount of clicked email versus those that have not been clicked. Consequently, Click-through rate (CTR) becomes the most critical measurement of the impacts of email marketing on the organization. Xxx, in their study, stipulates that the first step in converting potential customers into actual customers using email marketing is through getting them to click the email and read its contents. Therefore, in this study, the click or not click will be set as the targeted variable. The main reason why the click or not click becomes the target variable is that customers who are active in opening a firm’s emails may not be engaged in further engagement and purchasing. A study conducted by XXX found out that customers open and read an email simply to keep track of the firm’s products and offerings. This behavior does not necessarily indicate that they are actively looking for information to assist their purchase decisions (Zhang et al., 2017). Furthermore, a study conducted by Return Path (2015) on email optimization suggests that email frequency optimization should depend on the engagement level of customers, which is CTR.

On the same note, according to XXX, through the growth of CRM from traditional 4Ps of the marketing mix: product, price, promotion and place to 5Is: identification, individualization, interaction, integration, integrity, it is focused on the effective management of the relationships with customers, such as building customer loyalty, enhancing retention, attrition and cross-selling (Dawn & Kumar, 2014). The first step in creating the programs mentioned above is to identify the customer response rate. Therefore, through the Click-through rate, an organization will be able to track the number of potential customers or current customers who are willing to buy or inquire about a given product. Therefore, just as explained by XXX, a firm should find a way of making sure that customers are correctly engaging its customers. These scholars propose an organization should accompany and support email marketing with a reliable website portal where customers can log in and view various items sold by the company. XXX also echoed the same thing by stating that customers have more CLV(customer lifetime value) when they: (1) register for an account and stay logged in (2) repeatedly visit and engage with content (3) frequently buy and keep our products.

Selections of the Algorithm

The pressure on companies to ensure they have greater relevance in an email makes the selections of the correct algorithm to use a necessity for the success of a business organization in the modern markets. XXX explained that in the digital marketing mix, the email market is the most prefers channel for many customers who wish to receive information about a given product or service. However, data overload in most of the channels used to contact customers, such as email, has brought difficulties for many email marketers. XXX describes that one effect in particular that brings challenges in email marketing is the continuous drop in people’s average attention. Thus most people spend very little time reading their emails.

Further reveal that the impact of declining click rates is because people have very little time, less patience. Thus they will rapidly peruse through the email content without reading or getting what the information is about. A study by XXX found that there is always a time when an individual will take time to go through emails and even their social media account. On many occasions, people find time to read another thing for fun on social media when they are free, either after work or on the weekend. As such, knowing the best time to send emails is a critical factor for the success of email marketing. In conjunction, companies must choose the best algorithm to help optimize the sending time when the recipients are free, as well as finding the right person to send emails.

One of the best algorithm that an organization can select to ensure that the emails are sent to the right person and at the right time when the recipients will read the0m is “send time optimization.” This algorithm helps an organization to identify the people within its current customers who are likely to buy a given product or service and avail a possible time they are free to read an email. Hence, a firm will efficiently deliver the mails to established potential responders to engage them. XXX explains that the selection of the correct algorithm will help an organization attract the attention of many people who, in return, will both inquire more about the products or service market and make a purchase.

Evaluation of the Result

According to large bodies of research about email marketing, there are lots of ways through which n organization can evaluate the results of email marketing. According to XXX, the most approach to use when assessing the effects of email marketing is by determining the delivery rate of the email. An organization can only great contact with the customers when the email is delivered. XXX state that the delivery rate of email is a vital metric, which is the starting point of the company’s email campaign. Furthermore, the delivery rate is a critical evaluation tool that helps to monitor the strength and relevancy of the generated email contact. XXX, in their study, established that a higher delivery rate means the organization is reaching the intended audience; hence the speed of response from the recipients will also be more top. On the other hand, a low delivery rate signifies that the generated list is irrelevant and does not contact the right people who may be interested in buying a particular product or services being marketed.

XXX, in their study, found out that the results of email marketing can be measured by the rates at which the recipients open the email. Once the email has been delivered to the recipient, the next most significant task is getting the customers to open them an read the content of the email. Therefore, s explained by XXX, the email recipient will only open the messages if the title of the email is attractive or intriguing. Thus, the subject of the email needs to catch the attention of the customers’ attention and should be relevant to their needs such that they get interested in reading the information and responding to the organization. A study by XXX, explains that the best way to attract customers’ attention is to address them by their names, and the sale agent also should use their names instead of using the company’s name. Consequently, the higher the opening rates of the email by the customers, the more relevant and efficient the emails.

Click-through rate is another evaluation tool that can help measure the result of email marketing. The total number of people who have clicked the link to the email to read or get more information about the product is found by dividing the number of clicks by the total number of emails then multiplying the answer by one hundred for a percentage. XXX explains that if the number of clicks is high, it means the message in the email is relevant; hence the customers are likely to inquire more about the product or better still make a purchase. According to these scholars, Click-through rate will be affected by the location of the link to be clicked, and the message in the email. If the message is not convincing, many people will not bother to read it to the end, and when the link is located at a place, customers cannot see they will not lick it.

On the same note, XXX warns of the possibility of an organization relying on a false positive to measure the impact of email they sent to customers. XXX describes false positive as a situation that takes place when account security software mistakenly classifies an email as potential spam, thus not allowing to go through the inbox filler. When a positive false take place, an organization may deceive the organization that the email is delivered while is it is not. As a result, XXX state that business organization must develop strategies that will prevent the occurrence of this phenomenon. Some of the procedures mentioned by these researchers include; making sure that each message contains easy words to read, including precise subjects, avoiding unnecessary false email header, among other things.

Exploratory Data Analysis

For an organization to generate a massive number of responses from email marketing, it must consistently analyze its data in such a way that it will give it the correct amount of people its emails have attracted. Consequently, businesses are forced to choose the type of data analysis to use to monitor the impact of their email marketing strategies. According to XXX, the best data analysis that has proved over the years that helped in analyzing the influence of email marketing on its customers and profitability of the organization is exploratory data analysis (EDA). Exploratory data analysis is a data analysis method that focuses on pattern identification and recognition together with hypothesis generations. XXX explained that every camping in an organization must be analyzed to get its effects on the operations of the company.

Besides, XXX explains exploratory data analysis is a visual approach data analysis that digs deeper to reveal the underlying structures, maximizing the insights as well as constructing a testable hypothesis. However, for this analysis to work according to XX, there is a specific variable that must be present. Some of these variables include; determining the open rates, the click-through rates, unsubscription, and bounces, among other related statistics. In their study, XXX found out that exploratory data analysis is essential in establishing the impacts of a given campaign by a company. These scientists further elaborated that the purpose of exploratory data analysis entails a lot of things to ensure that the results from email reflect the main impacts of the same campaign on the entire company. Some of the tsk carried by exploratory data analysis include; spotting missing data and erroneous information, understanding the underlying structure of company data, and identification of the most crucial variable in the dataset. The other functions further entail; testing hypothesis, evaluating and establishing a model that can be used to explain the organization data using minimum variables. Therefore, exploratory data analysis I a fundamental data analysis process that would greatly help analyze the results in this study.

Data pre-processing

Data pre-processing is an important data mining technique employed in the transformation of raw data into useful information that can be used in making a decision as well as giving direction in the organization. According to XXX, data pre-processing involves various steps and issues that must be done to make data useful to the organization. Some of the essential elements and steps in data pre-processing are as follows;

a.) Missing Values

Missing values occurs during the data pre-processing when some crucial variables and element of the data being mined are not taken into included in the final data. XXX explains that, at times, a researcher or data analyst may find out the dataset they are handling is missing certain information. Better still, the expert may decide to remove an entire line of a given paragraph for the specific reason without realizing that they are eliminating crucial information. Furthermore, in a study by XXX, the concept of missing should adequately be understood to manage data successfully. If the information gathered by the researchers or organization data experts, they end up coming up with inaccurate inferences about a situation or situation being measured. XXX explains that there are ways to handle missing values in a dataset. Some of these methods include; filling in the missing values manually, removing the training examples, using the most probable values, employing a standard amount to replace the missing values.

b.) Constants

XXX explains that constant is the memory location where the data is stored temporarily to ensure that data remain the same throughout the execution process within an organization. Constants are not expected to changes; hence the organization must ensure that every constant value remains the same so that accurate figures are recorded. Some type of constants includes; literal constants which refer actual costs that are fixed into the source code and named constants is where a name is used instead of literal constant.

c.) Outliers

Outliers are another element that is essential data pre-processing. XXX explains data pre-processing as an object that deviates from the rest of the purpose in a given dataset. Outliers are caused by execution and measurement errors. Outliers can be detected by clustering data using distance to the closest cluster. Some of the types of outliers include univariate and multivariate. Univariate are outliers found in a single feature space within the distribution values. While multidimensional is are found in a dimensional space.

d.) Scaling

Scaling is the last step in the data pre-processing, and it is an approach utilized in standardizing the range of available independent variables and other features of the dataset. XXX explains that scaling is crucial because it helps to transform all variables into the same scale. One of the best ways to scale data is by standardization, which refers to ensuring that all variables are at the same level o as to get the most accurate data.

Dimensionality Reduction

Dimension reduction is another factor that is vital for the successful implementation of email marketing. XXX explains that dimension reduction is a process data mining experts use to reduce numbers of a random variable under considerations by getting all the set of principle variables. XXX, in their study, found out that dimension reduction has a lot of advantages in email marketing. One of these advantages is that it helps to reduce the time and storage space an organization requires for its data. Given the fact that there is a lot of data an organization requires to operate, it needs to minimize space so that all the information can be stored appropriately. XXX also found that dimension reduction has benefits such as; helping an organization to visualize its data and aiding in the removal of multi-collinearity to enhance the interpretation of the dataset.

Sampling

Sampling helps a lot in the email market since many a time that data mined from emails are too much imbalanced, notably the target variables. XXX explain that sample is a subset of a total population, and the process of selecting sample help an organization to recognize exactly how the email marketing is impacting the response of its customers. There are different types of sampling that are used by various organizations. XXX in this study established sampling has a lot of benefits to an organization using email marketing. According to these scholars, sampling helps an organization to bring the population of targeted customers to a manageable number. It also helps a company to reduce its cots as well as aid in minimizing errors from despondence as a result of massive amounts of emails to be analyzed. Furthermore, sampling helps an organization to save time when analyzing its data.

Training

It is always essential for an organization to train its employees continuously so that they can have the required skills and knowledge. XXX explains that technological changes need people to continually acquire and update their skills in various marketing techniques, mainly email marketing. Without proper training programs within an organization, workers may find themselves using outdated technologies hence getting incorrect figures. Furthermore, training of employees helps the organization to reduce the cost associated with problems and errors arising from lack of knowledge, mainly when they apply wrong techniques. Skilled workers also tend to do their work excellently and within a short time.

Therefore, a company has to always train its people throughout the year.

2. Business Understanding

The Company XX is a Europe’s based Fashion Company whose aims is to connect customers, brand, and experts. This company offers customers and producers a platform that they can sell and buy a variety of products beginning from head-toe-fashion. There are more than 26 million active customers served by this organization. Some of the products sold by this company include; ring clothing, accessories, beauty, and footwear, among other things. Furthermore, Company XX, avail over 2000 brand from different world-famous brand to local labels. This offers its customers experience as they can easily view the content of the website through their phone applications across more than 17 markets. The sites are further localized into 12 languages and support by a variety of payment options. As such, customers can easily order a product, and it gets delivered at their doorstep.

According to reports from Company XX, this organization had 26.4 million order is served by the end of 2018. Its growth was caused by an increase in customers who found t convenient to order goods from it frequently. The number of people who order their purchase through mobile phones made 48.1% of the net merchandise volume in 2018. On the same note, one’s strategy that this organization has used over the years is improving its customer’s net promoter score while strengthening its business operations. On the other, Company XX generated tot revenues of €5.4B (+20.0% YoY) and adjusted EBIT of €173. These figures show that XX did not attain its 2018 revenue target and profits goals. According to research conducted by XXX, Europe is has a population of more than 513 million.

Consequently, the European fashion market is among the largest sector in the world. Thus, it is estimated that this market has a market opportunity worth €430B in 2018 (+2.5% YoY) accompanied by the rapidly growing online segments. More importantly, the success of this organization is based on the online fashion segments, as many people continuously prefer online shopping over the traditional visiting of the stores and wholes shops.

History

In its earlier years, the highest priorities and most memorable moments of company XX were overcoming the fundamental challenges startups must survive mainly, winning over customers, building core capabilities, and proving the business model. For example, in 2011, this company had to unexpectedly take over the logistics from a third-party that was quality, cost, and scale risk. It did not have many options, so the management bet on themselves despite being unproven in logistics; a little more than seven years later, logistics is a core capability and is responsible for significant contributions to the company’s NPS (net promoter score).

Again, in 2013 Company XX became the fastest ever European company to achieve €1B in revenue. The public opinion focused on its financial losses was that XX would never be profitable. As such, the management of this organization acted decisively by doubling down on what was working, stopping what was not, improving efficiency, and reducing waste. Within a year, this became profitable, proving the doubters wrong. These are but two of many such examples. When it has faced significant issues, Company XX’s management team came together, relied upon each other, learned together, and made it happen. As the company moves to a new decade, there are many signs of its success. Everyone who built what Company XX is today should be incredibly proud. However, there is a risk that the success of this organization would affect the mind-sets of its stakeholders in the wrong ways. While the management would not run Company XX today the way they did in 2013, if we lose the mindset that helped them overcome obstacles, the company may not be successful in the long-term.

Today, it is clear that this company does, and will, face several obstacles: rising customer expectations, growing complexity from scale, increased competition, and more considerable uncertainty in the capital markets. The company, however, cannot take an incumbent’s approach. Incumbents see threats, seek to minimize mistakes, avoid risks, and let complexity overwhelm them, get lost internally, and, over time, lose confidence. Company XX must keep the qualities that have always differentiated its approach. Some of these qualities include factors like; customer focus, entrepreneurial mind-set, speed, and empowerment, which together enable all its management to focus externally, see opportunities, learn fast, act decisively despite risks, simplify for speed, focus, and scale, and make it happen. It calls this a Founding Mind-set. The entire Company XX believes its Founding Mind-set is such a critical ingredient for its success that it has elaborated upon the mind-set in this update, making it an integral aspect of its strategy (p. 29). Therefore, the management of this organization asks every employee and stokehold of Company XX to strive to reflect its Founding Mind-set and help it hire for and grow this mind-set as it continues to welcome new Company XXS.

Environment

To formulate a strategy requires Company XX management to anticipate how customers’ behaviors may change in tandem with online fashion, to understand its partners’ objectives and how their businesses are evolving, and to consider the company’s position relative to competitors’ future posts. Then, this organization must choose an approach (i.e., pick a lane) that leverages advantages it has or can build or acquire to succeed with key customer opportunities it foresees in the future.

Customer Behaviour and Online Fashion

To ensure that Company XX continue making profits, its management needs to think a bit differently when considering customer behavior for mid-to-long-term strategy. Customer behavior evolves incrementally but also sometimes disruptively (i.e., technology adoption and diffusion), and a robust strategy requires we account for both possibilities. Online fashion has brought a more excellent, more easily accessible selection to the customer and moved the changing room to the consumer’s home, freeing customers to engage on their terms. These improvements are working, which is why online has grown to 15% of European fashion and why it has become challenging to grow in the offline channel for XX’s company partners and retailers. However, there are still areas where online is not better than offline. First, when customers shop online, they give up the curation of selection they get from just walking into a relevant store (or aisle). Second, customers give up the ability to physically experience an item before ever taking it to the dressing room. Third, customers give up a chance for immediate gratification. Lastly, fashion advice and outfit suggestions are finding their way online but have yet to achieve parity with the best of what offline offers. Confirmation for these points can be found in customer sentiment about being overwhelmed by our selection (versus delighted), infrequent returns, in customers’ desire for ever-faster delivery, and the large percentage of single-item orders. Each of these topics (relevance, product representation, delivery times, fashion advice, and outfits) is an ongoing opportunity. Consequently, Company XX will continue to invest in improving its performance in each area.

Beyond offering an improvement to offline, there are several changes to the status quo that could have a significant impact on fashion and Company XX at large. While these changes will play out over longer time horizons (or in some cases never), this company must decide now whether, how, and when to respond. Sustainability – People are increasingly aware of the impact of their choices and seek to reflect that awareness through their purchases. This affects both how XX fulfills its obligations as a company but also company XX’s opportunities. Customers’ rising preference for organic foods may be the best analogy for how this could unfold in fashion. Given the fashion industry is often cited as one of the largest polluters, it is a question of when not if, this becomes relevant. Therefore, Company XXX can play a decisive role, offering customers more transparency and promoting awareness. This should lead to higher interest and demand for sustainably and responsibly produced apparel. Now is the time to embrace this as an opportunity by increasing its investment, and by questioning ongoing and future actions that could cause the company to lose credibility on a topic that is likely to become a central fashion issue. Many of company XX’s partners already view this topic in the same way and are pushing themselves. This is expected years of horizon challenge. XX’s goal is to develop its competence sustainably as a core capability, to lead this change.

2.1 CRM (customer relationship management) in the Company

The most crucial element to any kind of business in every sector if the customers. As such, an organization must know how it treats it relates to its customers. According to XXX, customers’ relationship management would determine organization profits. Perfect customer relation brings trust and loyalty among consumers, thereby assuring an organization controlling a large size of the market. Besides, the ideal customer relationship helps to improve a company brand image, thus allowing it to attract a large number of consumers leading to success. Consequently, today, Company XX made a big step towards a respectful relationship with customers by putting commercial communication into their hands. Giving up the fuzzy newsletter subscription, Company XX showcases the different communication streams and lets customers select the topics they are interested in, whether these are updates on new collections from their favorite brand, sale campaigns, or price alerts for favorite items. Everywhere on Company XX, customers can find an easy opt-in to indicate interest in a topic. There is no better way to engage in a conversation with customers than by asking them what they would prefer to be entertained with. Therefore, this organization is trying as much as possible to engage its customers through email marketing to allow them to remain informed and updated about different fashion products that are available in the market.

CUSTOMER PROBLEM OR OPPORTUNITY:

The concept of Permission Marketing calls out that customers appreciate if they have control over the communication and the content they receive. Our data confirm this: personal event-triggered messages have a 50% higher opening rate than broadcast commercial messages, lead to 8 times more CRM sessions per sending, and perform seven times better in terms of revenue. Before, when a customer subscribed to the newsletter, there was no further explanation of what and how often they will get notified – Company XX decided whom to reach out, what to communicate and how often. Now, by inviting customers to opt-in for a specific topic, customers will make the connection between how they behave onsite and which communication they can expect to receive off-site based on this behavior. Customers that have no newsletter subscription yet have the possibility to sign up for a specific topic instead of agreeing to receive a generic newsletter. For instance, by hitting the bell to be informed on new collections by Adidas, customers will be updated every time a new group is released. They will not fear to miss out and can relate to the messages. The communication adds value to their relationship with Company XX and makes it the Starting Point for Fashion.

SOLUTION

Company XX offers a transparent and easy way to opt-in for email and pushes notifications for single or recurring updates across the whole shop experience. Customers can indicate whether they want updates on specific brands, be invited to surveys, or if they are keen on making a bargain hence opt-in for sales communication only. Customers can manage their communication preferences as topics.

Who XXX’s customers are

Currently, Company XX has a total number of 10.3 active newsletter subscribers. These customers (or potential customers) have given us explicit consent that they would like to receive messages from Company XX. 12.5 MM customers have bought with Company XX and could technically be contacted (active non-subscribers). Therefore, if this organization can gain more access to additional and variety of products together with another specific topic it will continue to attract more customers. Besides, there are about 3.5 MM customers who unsubscribed from the newsletter (revokes), and these are the ones the organization could win back if we can gain new specific topics.

1.3 Measuring of Success

What will be measured?

There are lots of approaches company XX will measure the success of its email marketing. One of the ways to measure the success of using email marketing is by offering better prices for goods and services sold by the organization. This organization always revises its products from time as an event that helps to encourage man customers to buy from this company. Lower prices help to hep to drive many customers to increase the quantity of their basket. Changes in rates as an event can be driven by creating competition among the producers who supply this organization with products such that they can also lower their products. One befits of cheaper is that it allows customers to buy more goods, thereby reducing inventory costs as products are not kept for a long time by the producers. As a result, both company XX and the producers all gain a lot of profits.

The other event is that ensuring that the products and services of his organization are available 24/7. 24/7 business operation can be driven by providing that there is enough labor force who can respond to the customers anytime about anything they want to know about a given product. By allowing customers to shop even in the middle of the night bring efficiency to them as they can buy free without hurrying. The first benefit of 24/7 benefits is that it will increase the company’s total profits. The other benefit is that it brings convenience to both the customers together with the employees. To the customers, it allows them to shop anytime they want without thinking of beating the closing time. To the employee, it will enable them to work at night or day, depending on the time they are free.

How to measure incremental Impacts

The incremental impacts will be measured by the increase in the number of sales per product sold. This additional impact will be measured at the end of every fiscal year to determine and compare the increase or decrease in sales and profits accrued from each product sold by the company. According to XXX, the end of the financial year is the best time to determine the earnings of an organization in the ending fiscal year. Therefore, when there is an increase in the net earnings of an organization in the period email marketing was used, it will indicate that email marketing has a lot of impacts on the organization. Another way the incremental effects will be measured is by the drive traffic to the company website. The effect of email marketing will be felt when there is an increase in transit to the company’s website. A high percentage drive means that the campaign is thriving, and it is attracting potential customers.

2.2 Price cut email/Price Notifications

From time to time, an organization will be forced to change its prices depending on the demand and other market associated factors. It is, therefore, vital for an organization to inform customers about a price reduction for items in their cart and wish list. Consequently, Company XX has different ways used for price notification. The first method is by announcing the new price decrease directly to the customers. XXX explains that personal attention makes an organization’s communication more valuable. It is therefore essential to communicate to customers directly about the new prices and explaining to them why the costs have been cut. In any market, price changes are one of the most sensitive topics that have to be treated very carefully. An increase in price will scare away customers. In contrast, a decrease in price will send a perception that the quality or quantity of the product has decreased, thereby making customers look for an alternative company. Therefore, the firm should announce to customers directly on why the price has changed.

Another method used by other companies for price notification is offering chat or call options where they can engage the customers. Through conversations and calls, the organization will be able to inquire about the new prices and why they have been introduced. More importantly, the management may decide to add a call-to-action button in the email, making it easier for customers to call and inquire from the sales team. Some companies also find it easier to provide chat features in the user profile on the website; thus, any person will be able to see the new prices change and inquire if they require more information about the same.

The use of advertisement is another method used by other organizations to notify their customers about either increase or decrease in price. It is considered that advertising through different channels helps to reach a broader market than the methods above. For instance, the use of television advertising reaches a large number of people. This because almost 94% of people in the world today have television. Similarly, advertisement through radio is another method that some companies inform customers about price changes. Just like TV, radio has a broad market coverage, thus helping companies to reach a lot of people. Other new advertisement channels, such as social media marketing, among other methods, are employed by the different firms to inform customers about the price changes of their products.

Methodology

This study will use prediction instead of inferences. Predictive research is mainly concerned with forecasting future events as well as the behavior of people, animals being investigated. Consequently, this research method fits this study because it would help to reveal the future trends of the company based on the impacts of email marketing. Again this study will adopt supervised learning instead of unsupervised learning. The main reason for using supervised learning is because there is a lot of data that must gather in this study. Hence, it requires a method that would allow proper labeling. Again, adequate labeling in return will further give the data a lot of meaning, thereby allowing the use of the most relevant algorithm. Still, a supervised approach will be used in this study because it will enable the researcher to use both classification and regression problems to determine and predict the response of customers from the use of email marketing. More importantly, the study will also use classification algorithms to solve predictions instead of relying on neural networks or regressions. The classification algorithm is used in this study mainly because it is more accurate and gives precise answers than other methods.