Java Reference
In-Depth Information
marketing campaigns using starter campaigns. A starter is a first wave
of mails sent to a sample of the population, say 5,000 prospects, to col-
lect responses. The starter campaign informs HEW which customers
actually bought the products following the mailing, and can be used
in conjunction with other customer information to produce a build
dataset. The build dataset contains demographic data such as age,
marital status, and zip code, or behavioral data such as aggregate val-
ues on previously purchased products per product category. These
attributes serve as predictors and will be associated with a binary tar-
get to represent whether or not the person selected in the sample has
bought the product. From the build dataset, HEW can produce a clas-
sification model for generating a probability that customers not
selected for the starter campaign will buy the product. Combining
this probability with the mailing cost structure, such as the per-item
cost, and the profit generated when the customer buys the product,
allows minimizing the number of mails sent for a predicted profit.
In this scenario, there are three actors: the campaign manager, the
information technology (IT) department, and the contact agency. For
each marketing campaign, the HEW marketing department nomi-
nates a campaign manager who will use the proposed predictive
application. This campaign manager will be in contact with the HEW
IT department in charge of database administration tasks, such as
performing data extracts as requested by the campaign manager. The
third actor is the contact agency (TCA), which is an external organi-
zation used by HEW to conduct the mailings: TCA must be provided
with lists of names and addresses to be contacted for starter cam-
paigns, collect the responses of the contacted persons, and return
these responses to the campaign manager. TCA will also be used to
contact the list of prospective customers, which will be provided in
the same format as for the starter campaign.
The following is a step-by-step outline of the targeting campaign
scenario process:
HEW marketing department nominates a campaign manager.
The campaign manager creates a new campaign in the
application and defines campaign contents (such as the
message of the mail) outside of the application.
The campaign manager asks for a database extract showing
all active customers, and specifies the information that must
be associated with these prospects, such as demographic or
behavioral data (also not done in the application). This data
Search WWH ::

Custom Search