Marketing Analytics: Using Demographic Data to Select Target Markets

Genevieve owns a booming plastic surgery clinic in Santa Fe$,$ New Mexico. She is specialized in the restoration, reconstruction, and alteration of facial and body aesthetics. In the past five years or so$,$ she has noticed a surge of older people $($aged $65+)$ retiring in her renowned city of Pueblo$-$style architecture, Santa Fe$.$ So$,$ she decided to study her target market. Understanding her audience composition in terms of age, gender, and lifestyle would enable her to develop creative content on her website, buy the right media channel to communicate her messages, and target the accurate target market through marketing and remarketing campaigns. But, as a surgeon, she has neither the experience nor the time to do this on her own. So$,$ she called a friend of hers, a university professor, and asked her to recommend a top marketing student to do this analysis. You are chosen from among $540$ students. You begin by suggesting analyzing Genevieve$$s website users in order to gain an accurate picture of the composition of her target market.

A doctor talks to an elderly woman who is lying in a bed. A monitor at the back displays another doctor, scans, and other data. $$ Ariel Skelley$/$Getty Images

Figure $1$: Age, bounce rate, and conversion rate

Acquisition Online Behavior Purchase

Age All Users New Users New Users Who Viewed Only One Page Bounce Rate Pages Viewed per User User Duration $($on avg.$)$ in Seconds Users Who Were Engaged in a Transaction REVENUE Ecommerce Conversion Rate

$182545001200400490185$ $$25,000$

$2635600024006005120550$ $$50,000$

$3645100030025037030$ $$20,000$

$46558002008036020$ $$15,000$

$566550050302455$ $$10,000$

$66+30025151251$ $$500$

You suggest that the first item to be analyzed should be the bounce rate. The bounce rate is the percentage of visitors to Genevieve$$s website who, after viewing one page, navigate away from the site. A high bounce rate is an indicator that a homepage is boring or repellent. In order to obtain a low bounce rate, Genevieve has to improve the design of her website by making custom changes to its setup. According to various age groups, you calculate the bounce rate by dividing the number of users who viewed only one page by the number of new users $($use the data in Figure $1).$ What did you find?

multiple choice $1$

$33,27,81,43,58,63$

$33,25,83,40,60,60$

$30,30,59,45,55,68$

$35,35,50,45,60,65$

You also noted that the effectiveness of conversion marketing is measured by the conversion rate, the second variable that you need to track and analyze to determine the target market. The conversion rate is the percentage of new users who were engaged in an online transaction. In other words, conversion marketing is the act of transforming website visitors into paying clients.

In case the conversion rate is low, you suggest some practices to improve it$.$ For example, if a prospect abandoned a cosmetic item in the online shopping cart, then the clinic may offer a special $($or targeted$)$ offer, such as free shipping, or chat online with the visitor to answer questions or concerns in an attempt to convert him or her into a paying customer. Using user$-$generated ratings and reviews to transform visitors$$ concerns into assurances may also increase conversion rates.

Conversion marketing is a beneficial way to enhance not only conversion rates, but also website traffic and online revenues and profits. According to various age groups, you calculate the conversion rate by dividing the number of users who were engaged in transactions by the number of new users. Using the data in Figure $1,$ what did you find?

multiple choice $2$

$15,23,10,10,10,4$

$20,23,10,10,10,6$

$25,20,12,16,18,8$

$15,25,12,12,12,2$

Figure $2$: Gender, bounce rate, and conversion rate

Acquisition Online Behavior Purchase

Gender All Users New Users Users Who Viewed Only One Page Bounce Rate Pages Viewed per User User Duration $($on avg.$)$ in Seconds Users Who Were Engaged in a Transaction REVENUE Ecommerce Conversion Rate

Male $200050020039050$ $$15,000$

Female $400019004004140500$ $$35,000$

If you drill into the target age group, what would be the bounce rates for males and females? $($Use the data in Figure $2.)$

multiple choice $3$

$82,32$

$40,34$

$40,21$

$82,34$

If you drill into the target age group, what would be the conversion rates for males and females? $($Use the data in Figure $2.)$

multiple choice $4$

$10,26$

$8,12$

$8,16$

$10,16$

Figure $3$: Lifestyle, bounce rate, and conversion rate

Acquisition Online Behavior Purchase

Lifestyle All Users New Users Users Who Viewed Only One Page Bounce Rate Pages Viewed per Us