Working Paper

Enhancing Power of Marketing Experiments Using Observational Data

Ron Berman and Elea McDonnell Feit

Jun 5, 2018


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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