How do you create a Model?
Posted: Mon Dec 23, 2024 5:11 am
In other situations, modelling and scoring can be used to predict how likely a new customer is to have a high lifetime value. If we can predict who these people are then we can ensure that they receive special preference and highly tailored marketing communications.
Alternatively, we may also cyprus mobile phone numbers want to predict customers who are likely to lapse, so that we can contact them before this happens with an incentive to remain a customer.
In these situations (and in many others!) a model is used to score a database to identify the customers who should be included in the marketing activity (the target group).
In all customer modelling situations you work with a customer database, where a subset of customers have been identified as the “target market”. In the examples above, this could be responders to a previous campaign, existing high value customers, or people who have already lapsed.
The modelling process compares the target group to the whole prospect database to identify the characteristics that differentiate them. This might show, for example, that the target group tend to be of a certain age, income band or are users of another product.
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How do you use a Model to create a Score?
The end result of the customer modelling process is a way to generate a score for all people in the database. People are given a high score if they have similar characteristics to those typical of the target group.
Alternatively, we may also cyprus mobile phone numbers want to predict customers who are likely to lapse, so that we can contact them before this happens with an incentive to remain a customer.
In these situations (and in many others!) a model is used to score a database to identify the customers who should be included in the marketing activity (the target group).
In all customer modelling situations you work with a customer database, where a subset of customers have been identified as the “target market”. In the examples above, this could be responders to a previous campaign, existing high value customers, or people who have already lapsed.
The modelling process compares the target group to the whole prospect database to identify the characteristics that differentiate them. This might show, for example, that the target group tend to be of a certain age, income band or are users of another product.
image01_2.png
How do you use a Model to create a Score?
The end result of the customer modelling process is a way to generate a score for all people in the database. People are given a high score if they have similar characteristics to those typical of the target group.