Customer-journey-based targeting

Abstract

Customer Journey is all the steps that a customer goes through in the purchase process. Promotional effectiveness may vary depending on where the customer is located. This study selected the target group based on customer journey and analyzed the effect on promotion effect according to stages of the customer journey. We conduct a randomized field experiment to identify the outcome of push promotions in a causal manner and applied the Causal Forest technique with very detailed information about the customer's in-app behavior to estimate heterogeneous promotional effects. This study shows the effect of push promotion at various stages of the customer journey and suggests that the 'favorite' stage is a suitable point for targeted promotions. In addition, customers who frequently visited, purchased frequently, and removed products from the 'favorite' list within the favorite group are more likely to respond to push promotions. These findings can help understand the effects of customer-journey-based targeting strategy and suggest new design elements for mobile commerce.