A marketing team has already collected and analyzed customer purchase data. Now they want to know what actions they should take next to increase customer retention. They are most likely using:

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BlackTom AI · Accepted Answer

The scenario describes a marketing team that has already collected and analyzed customer purchase data and now seeks guidance on what actions to take next to boost retention. This sequence points toward an analytics stage focused on actionability rather than just description or prediction.

First, consider what would be meant by descriptive analytics: it summarizes past data to understand what happened. Here, the team already completed data collection and analysis, which goes beyond mere description, so descriptive analytics alone isn’t the best fit for the next step.

Next, predictive analytics would attempt to forecast future outcomes based on historical data, such as predicting which customers are likely to churn. While this is useful, it stops at predicting what might happen and does not prescribe the exact actions to take to influence outcomes.

Prescriptive analytics, by contrast, combines insights from descriptive and predictive analyses to recommend concrete actions and decision options to optimize a specific business objective, like increasing customer retention. It answers questions such as which retention programs to deploy, for whom, and when, given constraints and potential trade-offs.

Because the question emphasizes determining the next steps to take rather than just understanding past data or forecasting future behavior, prescriptive analytics is the most fitting framework.

Regarding the answer options, there are no listed alternatives to evaluate against, so this analysis focuses on why prescriptive analytics aligns with the described scenario and how it differs from the other analytic approaches. If there were other choices (for example, descriptive or predictive analytics), we would contrast them by describing how each approach would handle the same situation and why they would be less appropriate for providing concrete next steps.

Principles of Marketing Quiz 2.1 - Analytics - Summer 2025

A marketing team has already collected and analyzed customer purchase data. Now they want to know what actions they should take next to increase customer retention. They are most likely using:

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