Client relies heavily on direct mail to market its existing customers; They would like to market the right product at the right time to the right customer
To get the best return on their marketing investment they would like to mail only to those customers who are highly likely to respond with incremental sales
Identify demographic (wedding, child-birth etc.) and behavioral (inquiry for another product like loan, full payment to become a transaction etc.) triggers in the life-cycle of a customer
Analyze the spend patterns pre and post these triggers
Separate out the positive and negative triggers from the neutral ones
Pilot these positive and negative triggers in actual campaign setting
Roll-Out a trigger based marketing program based on the results of the pilot program
PROCESS STEPS
Variables Considered
Demographic & Behavioral Triggers
Pre and Post Credit Card spend
Modeling Process
Data Manipulation (Merging, Cleaning, etc.)
Data Transformation (e.g., Logs, Inverses, etc.)
Reducing the # of Triggers (i.e. Hypothesis Testing)
Tweaking the Model (i.e., checking for intuitiveness of triggers and their sign etc.)
Validating the Model (using a holdout sample)
Estimating the impact of non-neutral triggers on incremental sales
