Working Paper

Enhancing Power of Marketing Experiments Using Observational Data

Ron Berman and Elea McDonnell Feit

Jun 5, 2018

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Firms with prior panel data on customer response to advertising (e.g., CRM data) can use this observational data to identify more-responsive customers and improve the power of prospective experiments. Using this stratification approach to re-analyze several direct mail and email experiments, researchers are able to increase the accuracy of estimates of average marketing response by 10%-20%.

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