Probability Models for Customer-Base Analysis
WU Vienna University of Economics and Business
May 17-18, 2017
Professors Peter Fader (Wharton) and Bruce Hardie (London Business School) will introduce the participants of this two-day workshop to critical concepts and methods required to develop models for customer-base analysis and to understand key components of “customer lifetime value” (CLV). The covered material is somewhat technical, so some basic aptitude with probability/statistics would be beneficial for participants (but no formal programming skills are required – everything covered can be implemented in a spreadsheet). The target audience is both PhD students and marketing academics, as well as marketing analytics professionals who want to better understand these models.
The workshop will be hosted by the Marketing Department at WU Vienna University of Economics and Business and is organized in a way to allow for personal interactions among participants and the faculty. The registration fee is EUR 160 and covers food, coffee breaks and dinner. All attendees must cover their travel and hotel costs. Registration is on a first-come, first-served basis. To get registered for this workshop please complete and submit the registration form.
Customer-base analysis seeks to use data from a firm’s customer transaction database to answer forward-looking questions such as: (1) Which individuals are most likely to be active (or inactive) customers in a future period of time? (2) What will the aggregate and disaggregate purchase patterns look like for a group of customers in the future period? (3) What is the “customer lifetime value” (CLV) of those individuals listed in the firm’s database?
While these questions are of great interest to both researchers and analysts, the standard set of statistical tools we are exposed to in our education are not well-suited for providing answers.
This two-day workshop aims to fill in these gaps by bringing researchers and practitioners fully up to speed on the essential techniques that should underlie such customer-base analysis activities. Our two main objectives are: (1) to provide an overview of the basic “building blocks” of probability models that can be used to characterise customer behaviour, and (2) to use these “building blocks” in a series of focused models/examples that illustrate several state-of-the-art approaches towards customer-base analysis (often requiring nothing more than an Excel spreadsheet for complete model implementation). By the end of the workshop, participants will understand the critical concepts and methods required to develop models for customer-base analysis and to make meaningful and accurate statements about CLV in various managerial settings. Likewise, they will be keenly aware of the limitations and concerns of other approaches that are often used for similar purposes.
Who Should Attend
This program will benefit both PhD students and marketing academics and as well as mid-level analytics professionals who want to better understand these emerging concepts. The material is somewhat technical, so some basic aptitude with probability/statistics would be beneficial for participants. For instance, it helps (but is by no means required) to have some familiarity with basic probability distributions (such as the Poisson and the binomial), even if the details are largely forgotten. Similarly, participants should be comfortable with Microsoft Excel, they do not need for any advanced capabilities (we will rely exclusively on ordinary “built-in” Excel functions). Finally, participants do not need to bring a laptop — in fact, we actively discourage it. Just bring an open mind, a sharp pencil, and a high level of interest in the subject matter. All materials presented (including the detailed spreadsheets) will be made available to all participants immediately after the seminar.
Prof. Peter Fader
Prof. Peter Fader, PhD
Peter Fader is the Frances and Pei-Yuan Chia Professor of Marketing at the Wharton School of the University of Pennsylvania. His expertise centers around the analysis of behavioral data to understand and forecast customer shopping/purchasing activities. Some of these insights are reflected in his book, “Customer Centricity: Focus on the Right Customers for Strategic Advantage,” while others are brought to life via Zodiac (http://www.zodiacmetrics.com/), a SaaS startup that aims to make top-notch customer valuation models (and their applications) accessible to a broad array of data-driven organizations.
Prof. Bruce Hardie
Prof. Bruce Hardie, PhD
Bruce Hardie is Professor of Marketing at London Business School. He holds B.Com and M.Com degrees from the University of Auckland (New Zealand), and MA and PhD degrees from the University of Pennsylvania. His primary research interest lies in the development of data-based models to support marketing analysts and decision makers. Most of his current projects focus on the development of stochastic models of buyer behaviour for customer-base analysis. Bruce’s research has appeared in academic journals such as the Journal of Marketing, Journal of Marketing Research, and Marketing Science. He is a Senior Editor at the International Journal of Research in Marketing, and serves on the editorial boards of the Journal of Interactive Marketing, Marketing Letters, and Marketing Science.
Registration & Workshop Details
|registration form.Please get registered for the workshop using our||Room EA.6.026The workshop will take place in the premises of WU's Executive Academy.||Klick here for the program agenda.||[The WU Campus]|
[Hotels near WU]