Cross selling campaigns aim at selling additional products to existing customers.
A cross selling model estimates the propensity to uptake an add-on product for each scored customer.
A cross selling model can be built on the results of a test campaign to analyze respondents and identify customers with increased purchase potentials.
An easier approach which does not require the running of a test campaign, is to analyze the profile of customers who acquired the product of interest in the recent past. Here are a couple of examples based on the latter approach:
A cross selling model estimates the propensity to uptake an add-on product for each scored customer.
A cross selling model can be built on the results of a test campaign to analyze respondents and identify customers with increased purchase potentials.
An easier approach which does not require the running of a test campaign, is to analyze the profile of customers who acquired the product of interest in the recent past. Here are a couple of examples based on the latter approach:
Banking: Cross-selling an investment product to savings’ customers.
Mobile telephony: Cross-selling a telephony service, e.g. Internet usage.
Get 'Data Mining Techniques in CRM' for more examples and tips
- Modeling population: all active customers not owning the investment product at H (end of the historical period).
- Target population: those that acquired the product at T (end of the event outcome period).
- Scoring population: all active customers not owning the product at present.
Mobile telephony: Cross-selling a telephony service, e.g. Internet usage.
- Modeling population: all active customers not using the service before H (no traffic before H).
- Target population: those that used the product at T (at least some traffic between H and T).
- Scoring population: all active customers not using the service now.
Get 'Data Mining Techniques in CRM' for more examples and tips
2 comments:
Do you use logistic regression for creating cross-selling model? Your book only offer examples for segmentation using PCA & cluster analysis?
The second approach actually does not quite resemble the first approach because a test campaign itself would become a factor for affecting the response.
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