The Effect of Data-Driven Marketing Decisions on Customer Acquisition and Retention Performance: An Empirical Study

Abstract

The empirical research reported in this paper is on how data-driven decision-making influences the organizational performance concerning gaining and retaining customers. The study utilized primary data taken from 400 faces of marketing specialists, meaning the use of descriptive data for investigations in different industries. Adoption of practices about the use of accurate accounting models, predictive modeling, and online decision-making affects the four-item constructs of the study model. Statistical measurements of Data-Driven Marketing Practices (DDMP), Customer Acquisition Performance (CAP), Customer Retention Performance (CRP), and Organizational Analytics Capability (OAC) were made through a structured questionnaire. The validity of concepts is demonstrated by high-Cronbach's alpha coefficients (α > 0.85) securing the precision of measurement. As a strong linear relationship exists between all selected items, the resultant correlation coefficients are all Cent-Pearson's r = 0.678 and point to insignificant results. Both customer acquisition performance and customer retention performance are positively correlated at r = 0.742 (p < 0.001). The goodness of fit shown by data-driven marketing practices shows that they can be stable predictors of both dependent variables. Results from multiple regression demonstrate that DDMP explains 55.1% of the total variance in customer acquisition performance and 46.0% in customer retention performance. They all support the four hypotheses that organizations embracing data analytics win in things such as maintaining high-quality customer acquisition efficiency, lowering expenses in attracting the customer, increase the lifetime value of a customer, and keep the user coming back. It contributes to the development of scientific material concerning the capability of marketing analytics and casts an empirical vote for the strategic edge of a data-driven approach in contemporary marketing practice.