Uplift Modeling

Optimizing Customer Retention Programs

Using Uplift Modeling to pose Higher Demand and Increase Customer Retention

Table of Contents

executive director Summary3

Introduction5

Can Uplift Modeling alleviate?6

An Overview7

Refining the Target Audience10

Targeting Strategies Comparison11

What be the main(prenominal) applications?13

Who Can Benefit?14

Telenor: A case study16

veto Effects18

Disadvantages20

Recommendations & Conclusion20

Works Cited21

Executive Summary

A monstrous majority of marketers, both direct and database, are focused every bit on retaining existing customers and adding bran-new ones; however, managing customer attrition (or dig) remains a challenge. This paper discusses the use of a new kind of fashion model perk up modeling to improve the positivity and effectiveness of money spent on direct marketing, and then generating higher demand and increasing customer retention.

Uplift modeling predicts the changes in consumer behaviour by looking at devil groups of people, one of which was subject to the marketing action in question, and the early(a) of which was not; and models the residue in behavior between these twain groups, finding patterns in the variation.



By focusing on the difference in behavior between the treated and control groups, uplift models are able to predict the change in each customers purchase probability.

Uplift models therefore hand over higher returns on marketing spend, often from lower targeting volumes. practically theres a triple win, due to reduce triggered attrition (thus increasing overall retention), reduced volume targeted (thus miserliness money) and reduced dissatisfaction generated by those who dont react intumesce to retention activity.

Classifying a retention campaigns target audience into four-spot segments (savables, sleeping dogs, lost causes and sure things) helps marketers to only target those customers that are savable. This approach to retention: 1) increases program performance,...If you want to get a full essay, order it on our website: Orderessay



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