Adaptive Marketing: Redefining Personal Care Industry Tactics

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Wenzel Vaughn P. Pestaño

Master in Applied Business Analytics

University of Asia and the Pacific

Ruth L. Legaspi

Lecturer, Master in Applied Business Analytics, University of Asia and the Pacific

Keywords:  Adaptive marketing strategies; Post-pandemic; Personal care services

ABSTRACT

The COVID-19 pandemic disrupted consumer behavior and changed the market landscape across all industries – retail or business-to-business. This study specifically focuses on the personal care industry, which the pandemic has challenged to adapt its business model, marketing strategies, and action plans to retain the customers' evolving dispositions and behavior in the changing post-pandemic milieu. The primary objective was to identify actionable segments within the customer base and tailor marketing strategies to enhance engagement and retention.

Using historical data (2020-2023), the researchers applied data mining techniques and statistical analysis. K-means clustering segmented customers, while the Apriori algorithm identified upselling opportunities. Optimization techniques determined the best actions for each segment to improve revenue. The effectiveness of the strategy and action plans was evaluated by comparing control and treatment groups through conversion rates. 

Key findings included a 0.71 silhouette score for clustering quality, 27% conversion rate for adaptive marketing strategies, 35.7% upselling frequency, a 7.91% increase in average order value (AOV), and a 25% reduction in monthly cancellation rates. This project highlighted the importance of updating customer segments and refining marketing strategies to boost engagement, retention, and business outcomes. 

These insights provide a foundation for the company to strengthen its market position, increase customer loyalty, and drive sustained growth in the clustering quality, conversion rate, upselling frequency, average order value, and cancellation rates.