Promo Sensitivity Scoring for Next-Level User Personalization and Promo Cost Optimization

To reduce promo costs, understanding user sensitivity is crucial. By implementing a scoring system for user sensitivity scoring to promotions, we can customize promotional amounts or types based on user characteristics, reducing costs for less sensitive users and boosting sales for more responsive users through personalized promotions.

Key Takeaways

• Every user definitely has a certain sensitivity, there are users who will buy if the promo given is higher, there are even those who don’t care if we reduce the promo since they will still buy anyway.
• Understanding signals of user behavior (transactions and interactions) helps us to get influential variables to be used as scoring, where from the scoring, we can personalize promo amount based on users sensitivity scoring.
• This project uses a simple machine learning approach to understand which variables that ore affect to initiate user sensitivity will help to define the weight for scoring.
• Experiments are carried out continuously to obtain the optimal scoring model and appropriate threshold. This project significantly reduced the cost ratio up to 34%

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Bio

Muchid Ariyanto – Principal Business Intelligence Analyst | Tiket.com | Indonesia

Muchid Ariyanto (Born on December 30, 1995 and currently residing in Jakarta,) is a professional in Data Analytics with over 7 years of expertise. Proficient in handling extensive datasets, I collaborate seamlessly with cross-functional teams, including Product, Business, Design, and Engineering. My primary focus is on interpreting customer behavioral data and transforming it into actionable insights that drive key business metrics, also experimentation and statistical methods. With a solid academic background in Mathematics, I graduated from Universitas Indonesia, bringing a strong foundation in statistics to my data-driven approach. Passionate about data comprehension and strategy development, I leverage historical data to spearhead innovative initiatives. I thrive on creative approaches to data analysis and remain committed to continuous improvement. My strong business communication skills make me adept at navigating dynamic and rapidly evolving work environments, positioning me as a valuable asset in the field.