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Friday, 20 May 2011

Turning to Academics for Analytic Insight

Technology Review
May 20, 2011

Since 2007, the online ticket broker StubHub has been trying to study the buying habits of its customers more closely. Every month, it randomly selects 2,000 first-time buyers and tracks their behavior on its site over time. But analytics experts at the company were already swimming in too much data to make full use of the added information.

So last month StubHub provided all that data to academic researchers to see if they could tease out new insights. StubHub wants to know whether its discount offers get dormant buyers to return to the site, whether buyers who are regularly offered discounts stop buying at full price, and which of its e-mail campaigns are successful in retaining customers.

StubHub agreed to work with the University of Pennsylvania's Wharton Customer Analytics Initiative, a three-year-old organization that aims to make connections between companies with lots of data and academics from multiple universities who want to figure out new ways to analyze it. Originally called the Wharton Interactive Media Initiative, it changed its name this year to reflect its goal of working with more traditional companies rather than just online media. Cofounder Peter Fader, a Wharton marketing professor, hopes it will soon be working with a pharmaceutical company, a financial services firm, and some nonprofit organizations. With growing pools of data, he says, many kinds of companies that want to understand their customers' behavior need tools more sophisticated than focus groups.


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