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- W3125279269 abstract "This paper empirically investigates using the e-mail channel to target customers with a delayed incentive promotion—specifically, gift card promotion—and derives data-driven e-mail targeting policies. Gift card promotions are popular across retailers because they incentivize customers to spend more than a fixed expenditure level on regularly priced products by rewarding customers with a gift card to be redeemed against a future purchase. The e-mail channel provides retailers with new sources of customer-level data, which enables better prediction of customers’ responsiveness to e-mails (e.g., clicking) and the sales promotion that comes with it (e.g., participation in the promotion). We formulate the retailer’s promotion e-mail targeting problem by maximizing two objectives—the promotion’s profitability (i.e., profit-based targeting) and e-mail click-through rate (i.e., CTR-based targeting). We also take into account the retailer’s promotion budget and exclusivity concerns in targeting e-mails. We use a comprehensive dataset from a Fortune 500 luxury fashion retailer’s online channel and utilize both parametric and non-parametric methods to predict customers’ response to promotion e-mails. Our data-driven targeting policies improve the promotion’s profitability by 5.57% and e-mail CTR by 472.57%, on average, compared to our partner retailer’s current e-mail policy. We also find that the CTR-based targeting policy lowers promotion profitability by, on average, 9.09% compared to the profit-based one. However, the CTR-based policy recuperates the short-term losses in the long-term and increases long-term profitability by 3.94%, on average, compared to the profit-based targeting policy." @default.
- W3125279269 created "2021-02-01" @default.
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- W3125279269 date "2020-01-01" @default.
- W3125279269 modified "2023-09-26" @default.
- W3125279269 title "Data-Driven Approaches to Targeting Promotion E-Mails: The Case of Delayed Incentives" @default.
- W3125279269 doi "https://doi.org/10.2139/ssrn.3712428" @default.
- W3125279269 hasPublicationYear "2020" @default.
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