Could we turn a car journey into a premium treat?
Building on the previous post about Bayesian theory and a bit of and experimenting in Google docs, i've built a Bayesian calculator that works in a way that (for me at least) feels intuitive.
I've used the equation from Nate Silvers book The Signal and the Noise, although i'm not sure where this equation should be attributed.
You can also see the calculator here (its a static web page)
The example below is fictitious. I've looked at it in two ways. #1 with probabilities based on gut feeling. #2 with probabilities based on hard figures pulled off the office for national statistics about transport here
We are working for a company that aims to offer an "online car concierge" service. For the sake of clarity lets call it Carcierge. Its a premium offer not that different to Uber but launching in England. The client already has a market presence but as a standard taxi service. Their ambition (and brief to us) is to enter the 'premium' service sector and they want us to build a brand around premium private hire drivers.
Some hard facts we have are:
78,000 licensed taxis in England and Wales with 22,600 in London, 31% of the total (31 March 2011 from this go.uk report)
155,100 licensed Private Hire Vehicles (PHVs), although this includes all of the various minicabs.
We also know why people travel (from the National Travel Survey 2010 here)
From this we could infer:
Our client should focus on short trips.
and an obvious Carcierge customer might be the corporate commuter being hammered by parking premiums, rising public transport costs and congestion charges
However, the market for the corporate commuter is fierce (and obvious), so lets imagine:
Carcierge will add value as a premium 'treat' that people can book occasionally when they are doing something special, maybe a night at the theatre or corporate entertainment where a hired 'private driver' feels more discerning and special. We'll define a category code where an evening out starts with the journey. Luxurious service a pleasure to unwind in.
#1 Developing a probabilistic response but recognising that the data supplied is disconnected with the hypothesis, so basing inputs on gut feel and presenting it as biased.
You can see the calculator on google docs here
So my gut feeling (although I did believe in the hypothesis as I wrote it) when looking at the hypothesis through Bayesian eyes is that actually adding value to 'the journey' probably isn't the most compelling strategy for Carcierge
#2 developing a probabilistic response using the 'hard data' sources, and trying to infer a pattern or rationale for each input. The data isn't quite 'right' to answer this exact hypothesis so i've knowingly tried to find my own pattern in the data.
You can see the calculator on google docs here
Building a biased analysis by inferring meaning into the data implies that the probability Carcierge could add value as a premium 'treat' is even less.
Unless the perfect data set can be found, it seems disingenuous to daisy-chain adhoc data together and present the findings as cod-statistical analysis. The attempt to intellectualise the findings might be read as 'fact' while the factual-ness wont be perfect as the input is convenient rather than designed.
However, in my opinion, having less data, but structuring the calculation as a baseline to be tested and refined on an ongoing basis might be a useful yardstick. In this faux world, it would be encouraging if Carcierge ignored the low probability, rolled out a campaign and examined the hypothesis with actual data.
That ongoing refinement would allow us to build a tool that could be used to better reflect probabilities to questions around how Carcierge ought to behave, structure experience, develop partnership, etc etc
Although alot of branding and design is awash with patchy 'real data' I'm thinking that as a discipline for examining our thoughts its rigour is exceptionally useful.
Do get in touch if you have any thoughts or feedback.