Exploiting response models: optimizing cross-sell and up-sell opportunities in banking

The banking industry regularly mounts campaigns to improve customer value by offering new products to existing customers. In recent years this approach has gained significant momentum because of the increasing availability of customer data and the improved analysis capabilities in data mining. Typically, response models based on historical data are used to estimate the probability of a customer purchasing an additional product and the expected return from that additional purchase. Even with these computational improvements and accurate models of customer behavior, the problem of efficiently using marketing resources to maximize the return on marketing investment is a challenge. This problem is compounded because of the capability to launch multiple campaigns through several distribution channels over multiple time periods. The combination of alternatives creates a complicated array of possible actions. This paper presents a solution that answers the question of what products, if any, ...

• Type: Conference
• Year: 2002
• Where: KDD
• Authors: Andrew Storey, Marc-David Cohen
• Keywords: Business Constraints, Data Mining, KDD 2002, Largest Expected Value, Multiple Sequential Campaigns