Advertisement

The Predictive Modeling Process

  • Robert C. Blattberg
  • Byung-Do Kim
  • Scott A. Neslin
Part of the International Series in Quantitative Marketing book series (ISQM, volume 18)

Abstract

The third cornerstone of database marketing (the other two being LTV and testing) is predictive modeling. Predictive modeling is the use of statistical methods to predict customer behavior — e.g., will the customer respond to this offer or catalog? Will the customer churn in the next 2 months? Which product in our product line would be most attractive to the customer? Which sales channel will the customer use if we send the customer an email? Predictive modeling first and foremost is a process, consisting of defining the problem, preparing the data, estimating the model, evaluating the model, and selecting customers to target.We discuss the process in depth, and conclude with a review of some important long-term considerations related to predictive modeling.

Keywords

Predictive Modeling Loyal Customer Customer Characteristic Fico Score Predictive Modeling Process 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  • Robert C. Blattberg
    • 1
    • 2
  • Byung-Do Kim
    • 3
  • Scott A. Neslin
    • 4
  1. 1.Kellogg School of ManagementNorthwestern UniversityEvanstonUSA
  2. 2.Tepper School of BusinessCarnegie-Mellon UniversityPittsburghUSA
  3. 3.Graduate School of BusinessSeoul National UniversitySeoulKorea
  4. 4.Tuck School of BusinessDartmouth CollegeHanoverUSA

Personalised recommendations