Understanding and forecasting customer activity is a critically important exercise for all firms. In this course, we will learn:
1. Simple yet powerful models that use readily available customer activity data to capture underlying patterns in customer behavior
2. How to use these models to provide accurate forecasts for what these customers will do in the future
3. How to use these forecasts to inform customer management strategies and to estimate company valuation.
We will start by learning a few basic ideas and models in the initial sessions. These will serve as the building blocks for advanced models to calculate managerial, actionable quantities such as Customer Lifetime Value and for Customer-Based Corporate Valuation. Throughout the course, we will ascribe to and discuss the philosophy of customer centricity, i.e., how to identify and focus on the right customers for strategic advantage. We will learn how the developed tools will enable a manager to develop a robust customer-centric strategy. The course will equip the sophisticated manager with a set of statistical tools that can help to analyze a wide variety of typical business situations. To ensure that the models that we learn in class are relevant and transparent to managers, they have been carefully developed and selected to:(a) offer actionable marketing insights, (b) work with data that are available in a simple, manager-friendly format, and (c) be fully implementable in a standard spreadsheet package (like Microsoft Excel).
Associate Professor of Business
Kinshuk Jerath is the Class of 1967 Associate Professor of Business in the Marketing Division at Columbia Business School. His research is in the area of technology-enabled marketing, primarily in online advertising, online and offline retailing and customer management, and he focuses on strategy development and measurement with data. His research has appeared in top-tier marketing journals, such as Marketing Science, Management...