Jun 20 2014

How can you maximize your ROI through Targeted Marketing Campaigns

Every consumer company that exist in today’s world have vast amount of transactions data, containing information about every product that is sold and about every individual who has purchased it. Propensity and Uplift modeling would help in answering questions like:

  • Which marketing campaign will allow you to reach more customers?
  • Which is the customer segment on which the marketing campaign should be targeted?


aaum logoPropensity’ which literally stands for ‘change in behavior’ helps in finding which of the marketing campaign has the most positive impact on your ROI. This model works on the basis of score matching technique and then comparing the customer group who were exposed to the campaign (treatment group) and the customer group who were not exposed to the marketing campaign (control group). Comparison is made with respect to the underlying characters of every transaction between the treatment and the control group.


Uplift modeling helps you to identify and target the customers who want to hear – isolating the ones who don’t. Many marketers overlook the pricey consequences that can result from sending mass, untargeted emails or marketing communication messages to their entire audience.

Uplift modeling has helpe dUS Bank better target its customers, and as a result, it has reduced its mailing volumes by up to 40% and has achieved a five-fold increase in campaign return on investment compared with existing programs”

There is a fundamental segmentation that separates customers into the following groups:

The Persuadables : customers who only respond to the marketing action because they were targeted

The Sure Things  : customers who would have responded whether they were targeted or not

The Lost Causes  : customers who will not respond irrespective of whether or not they are targeted

The Do Not Disturbs or Sleeping Dogs : customers who are less likely to respond because they were targeted

LoyalSIGHTS helps you to identify the persuadables, the only segment that provides true incremental response.

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