1. DEFINE THE PROBLEM
2. PREPARE THE DATA
3. ESTIMATE THE MODEL
4. SELECT CUSTOMER TO TARGET
Source: Blattberg, R. C., Kim, B. D., Neslin, S. A.(2008). Database Marketing. Springer New York.
1. DEFINE THE PROBLEM
2. PREPARE THE DATA
3. ESTIMATE THE MODEL
4. SELECT CUSTOMER TO TARGET
Source: Blattberg, R. C., Kim, B. D., Neslin, S. A.(2008). Database Marketing. Springer New York.
Identify customers that will "leave" Hartlauer
Create indicators from Hartlauer sales and customer data
1. Decision Tree estimation
2. Predictive Model
Targeted mailing,
tailor-made offers, etc.
Average Frequency
Minimum Recency
Year of Birth
Gender
is completely
balanced 50/50