Monday, August 4, 2014

Customer targeting (slides)

Customer targeting is one component of the direct marketing. The aim is to identify the customers which are the most interested in a new product. We are in the data mining context because we create a classifier from a learning sample. But we do not want to classify the instances. We want to measure the probability of the individuals to buy the product i.e. their score, their propensity to purchase. In this context, we use a specific tool - the gain chart (or the cumulative lift curve) - to assess the efficiency of the analysis.

In these slides, we detail the overall process. We emphasize the reading of the gain chart, especially the transposition of the reading of the chart from a labeled sample to the customer database (for which we do not know the values of the target attribute).

Keywords: customer targeting, direct marketing, scoring, score, propensity to purchase
Components (Tanagra): SCORING, LIFT CURVE
Slides: Customer targeting
Microsoft, “Lift chart (Analysis Services – Data Mining)”, SQL Server 2014.
H. Hamilton, “Cumulative Gains and Lift Charts”, in CS 831 – Knowledge Discovery in Databases, 2012.