Most direct marketing targets the wrong people. It wastes money by focusing effort on many who will not react positively, and some who may even react negatively, while neglecting others who would respond favourably if targeted. This talk shows how a new modelling technique-uplift modelling-can be used to optimize targeting to maximize the returns from direct marketing. It achieves this by predicting, at an individual level, the change in behaviour likely to result from a particular marketing intervention.
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