Uplift Modeling Application and Methodology in Database Marketing
While there is a broad consensus that incrementality is the accurate measurement of database marketing impact, few marketing activities today are focused on uplift effect; because most of the target campaigns are selected by leveraging propensity models which maximize the gross response or demand. In this paper, we will introduce a tree-based uplift modeling methodology, which optimizes true marketing profitability. We will also discuss the major stages involved in this approach, with a real-life example from analytic services in the specialty retail industry.
KeywordsDouble Difference Market Treatment Good Split Marketing Treatment Propensity Model
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