MKTG 3596 Lecture Notes - Lecture 1: Logistic Regression, Predictive Modelling, Customer Retention
Document Summary
How can you increase their value over time?) Cross-selling and up-selling (q: how can we increase amount sold to current customers?) Predictive modeling = rfm, decision trees, logistic regression (q: which customers and prospects are most likely to buy next?) Customer retention (q: how can we prevent the good customers from defecting?) Privacy and personalization (q: what are the benefits and risks of so much personal information?) Without no measure of how company is doing. Cut costs, improve efficiency of the company. Have more satisfied customers: higher retention rates. Modeling has benefits, but you need a way to communicate those benefits to others. Visuals and measures of performance improvement can be useful to comparing approaches.
