Most direct marketing situations involve multiple customer behaviors, each of which has an impact on profitability. All the profit related behaviors should be modeled and the all predicted behaviors incorporated into marketing decisions. By building separate models for each behavior

  • There is more accuracy
  • Marketers get visibility to the drivers of each behavior
  • Changes in cost or process can be incorporated into decisions

The profit calculation is done using all behaviors and relevant costs. In multi-step situations each customer’s estimated profit will change at each decision step. Available data about the customer may also change leading to adaptations to the marketing treatment of that customer

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