Uplift modeling – An upping predictive analytical approach
In order to measure targeting strategy performance, it is important to understand how many customers will respond to the marketing campaign. Presently, there are various approaches to answer this. Predictive modeling techniques such as response and uplift modeling are statistical methods to determine the number of respondents and non-respondents.
This is where uplift modeling is used as it helps in identifying the right set of customers and thereby increasing ROI (Return on investment).
Where Uplift modeling is used?
Most of the IT companies, BFSI sector, energy sector, and automobile sector are using this technique nowadays to come up with more efficient campaign strategies, thereby strengthening their ROI. For example an Internet retailer’s product offer can be sent by e-mail or by traditional post; telecommunication operators may advertise their services by SMS, voice calls or other communication channels. Uplift modeling thus helps in identifying the selective audience for each advertising technique.