Improving E-Mail Marketing Response

Improving E-Mail Marketing Response
Read the following case study.

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A company wishes to improve its e-mail marketing process, as measured by an increase in the response rate to e-mail advertisements. The company has decided to study the process by evaluating all combinations of two (2) options of the three (3) key factors: E-Mail Heading (Detailed, Generic); Email Open (No, Yes); and E-Mail Body (Text, HTML). Each of the combinations in the design was repeated on two (2) different occasions. The factors studied and the measured response rates are summarized in the following table.

Table: Improving E-Mail Response Rate Run Heading Email Open Body Replicate Response Rate 1 Generic No Text 1 46 2 Detailed No Text 1 34 3 Generic Yes Text 1 56 4 Detailed Yes Text 1 68 5 Generic No HTML 1 25 6 Detailed No HTML 1 22 7 Generic Yes HTML 1 21 8 Detailed Yes HTML 1 19 1 Generic No Text 2 38 2 Detailed No Text 2 38 3 Generic Yes Text 2 59 4 Detailed Yes Text 2 80 5 Generic No HTML 2 27 6 Detailed No HTML 2 32 7 Generic Yes HTML 2 23 8 Detailed Yes HTML 2 33

Write a two to three (2-3) page paper in which you:

1.Use the data shown in the table to conduct a design of experiment (DOE) in order to test cause-and-effect relationships in business processes for the company.
2.Determine the graphical display tool (e.g., Interaction Effects Chart, Scatter Chart, etc.) that you would use to present the results of the DOE that you conducted in Question 1. Provide a rationale for your response.
3.Recommend the main actions that the company could take in order to increase the response rate of its e-mail advertising. Provide a rationale for your response.
4.Propose one (1) overall strategy for developing a process model for this company that will increase the response rate of its e-mail advertising and obtain effective business process. Provide a rationale for your response.
Your assignment must follow these formatting requirements:

•Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
•Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:

•Build regression models for improving business processes.
•Design experiments to test cause-and-effect relationships in business processes.
•Use technology and information resources to research issues in business process improvement.
•Write clearly and concisely about business process improvement using proper writing mechanics.

Run Heading (x1) Email Open(x2) Body(x3) x1 x2 x1x3 x2x3 x1x2x3 Repeat Rate 1 Repeat Rate 2 Average RR SD RR
1 Generic(-) No(-) Text(-) + + + – 46 38 42 5.656854249
2 Detailed(+) No(-) Text(-) – – + + 34 38 36 2.828427125
3 Generic(-) Yes(+) Text(-) – + – + 56 59 57.5 2.121320344
4 Detailed(+) Yes(+) Text(-) + – – – 68 80 74 8.485281374
5 Generic (-) No(-) HTML(+) + – – + 25 27 26 1.414213562
6 Detailed(+) No(-) HTML(+) – + – – 22 32 27 7.071067812
7 Generic(-) Yes(+) HTML(+) – – + – 21 23 22 1.414213562
8 Detailed(+) Yes(+) HTML(+) + + + + 19 33 26 9.899494937

sum+ 163 179.5 101 168 152.5 126 145.5
sum- 147.5 131 209.5 142.5 158 184.5 165
ave + 40.75 44.875 25.25 42 38.125 31.5 36.375
ave- 36.875 32.75 52.375 35.625 39.5 46.125 41.25
effect 3.875 12.125 -27.125 6.375 -1.375 -14.625 -4.875

Regression Coefficients
b0 = 77.625 1 77.625 Run Regression
b1= 1.9375 1 1.9375 1 80.8
b2= 6.0625 1 6.0625 2 74.8
b3= -13.5625 1 -13.5625 3 96.3
b4= 3.1875 1 3.1875 4 112.8
b5 = -0.6875 1 -0.6875 5 64.8
b6= -7.3125 1 -7.3125 6 65.8
b7= -2.4375 1 -2.4375 7 60.8
64.8125 8 64.8
Regression Model
y = 77.625 + 1.9375 x1 + 6.0625 X2 -13.5625 x3 + 3.1875 x1 x2 -0.6875 x1 x3 -7.3125 x2 x3 – 2.4375 x1 x2 x3

Interaction Effect Chart Example

Generic(-) 42 57.5
Detailed(+) 36 74

Format of email heading has small effect
Using detailed Email heading attracts
much higher response rate when email is open

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