Case Study: Improving E-Mail Marketing Response

Read the following case study.

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.

Part A-

1. Use the data shown in the table to conduct a design of experiment (DOE) analysis using Excel.  Use the provided Excel template for the analysis (MAT510 Case2_DOE_Calculation v1 template).  This template uses the algorithm from page 297 of your textbook.

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

a) 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.

b) 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.

c) 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.

d) 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.

4. There are two deliverables: Excel DOE analysis and the write-up.

Part B-

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.

Please consider answer following questions after performing the DOE data analysis:

Based on analysis shown in the Excel file (MAT510 Case 2 DOE Calculation), please identify the most probable cause on improving E-mail response rate.  What are second or third important factors that affect the email response rates?  In the email body, do you prefer using HTML or text format?  How do email body formats affect the response rates?  Do you think the interactions among factors (x1, x2, x3) significant enough to affect the response rate?

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.

We suggest using Interaction Effects chart.  An example of the chart is shown in the Excel file.

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.

Using text message instead of HTML format has the most significant effect on the response rate.  We would recommend using text format and detailed heading for email marketing process.  You would get the highest response rate when recipient open the email message.  Analysis is shown in the Excel file.

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.

Attachment:- MAT510 Case2-DOE-Calculation.rar