How causal machine learning can leverage marketing strategies: Assessing and improving the performance of a coupon campaign.

ABSTRACT: We apply causal machine learning algorithms to assess the causal effect of a marketing intervention, namely a coupon campaign, on the sales of a retailer. Besides assessing the average impacts of different types of coupons, we also investigate the heterogeneity of causal effects across different subgroups of customers, e.g., between clients with relatively high vs. low prior purchases. Finally, we use optimal policy learning to determine (in a data-driven way) which customer groups should be targeted by the coupon campaign in order to maximize the marketing intervention's effectiveness in terms of sales. We find that only two out of the five coupon categories examined, namely coupons applicable to the product categories of drugstore items and other food, have a statistically significant po

SUBMITTER: Langen H 

PROVIDER: S-EPMC9833560 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature