A Practical Guide to Data Mining for Business and Industry

8 Marketing: Prediction

Marketing: Prediction

1. 8.1 Recipe 1: Response Optimisation: To Find and Address the Right Number of Customers
2. 8.2 Recipe 2: To Find the x% of Customers with the Highest Affinity to an Offer
3. 8.3 Recipe 3: To Find the Right Number of Customers to Ignore
4. 8.4 Recipe 4: To Find the x% of Customers with the Lowest Affinity to an Offer
5. 8.5 Recipe 5: To Find the x% of Customers with the Highest Affinity to Buy
6. 8.6 Recipe 6: To Find the x% of Customers with the Lowest Affinity to Buy
7. 8.7 Recipe 7: To Find the x% of Customers with the Highest Affinity to a Single Purchase
8. 8.8 Recipe 8: To Find the x% of Customers with the Highest Affinity to Sign a Long-Term Contract in Communication Areas
9. 8.9 Recipe 9: To Find the x% of Customers with the Highest Affinity to Sign a Long-Term Contract in Insurance Areas

The recipes in this chapter are about searching the customer base with a view to targeting customers for promotions and predicting outcomes.

The concept described in Recipe 1 appears in many different guises. The applications differ, and the similarities to Recipe 1 are not always easily recognised. In Sections 8.2–8.9, we give typical examples where the variations might arise. In these variations, the methodology in Recipe 1 can be followed up until the implementation. In the following sections, we give typical examples for each application and the special considerations required for the implementation.

8.1 Recipe 1: Response Optimisation: To Find and Address ...