Amoy X. Yang

Amoy X. Yang
A Better Mousetrap

A conventional response model technique, such as logistic regression, predicts probabilities by looking at purchase pattern in relation to explanatory elements like historic transaction, demographics and geographics. Customers therefore can be scored in terms of likelihood projection, which allows direct marketers to focus on top-ranked niches and thus raise marketing ROI. This is what every firm dreams of: Mail less and mail smart. But does this type of model truly address your business issue—measuring a specific campaign and boosting its impact in the next drop? In a real-world environment, customer behaviors are most likely driven by multiple campaigns through different channels, such as direct mail,