Titlebook: Data Mining for Managers; How to Use Data (Big Richard Boire Book 2014 Palgrave Macmillan, a division of Nature America Inc. 2014 big data.

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Using RFM as One Targeting Option,doing something simpler can in many cases be equally appropriate. A good example of this is the RFM index (recency, frequency, and monetary value); this index represents one nonstatistical method of targeting customers for a given business initiative. Here, the analyst can use three key pieces of in

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The Use of Multivariate Analysis Techniques, a continuous range of values; logistic regression predicts outcomes that are categorical in nature. The most commonly used logistic routines are used to predict yes/no behaviors, such as response, attrition, or credit default. The outcome derived can also be a set of rules such as CHAID rather than

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Tracking and Measuring,ame time, this process should always yield new insights and learning that can be utilized for future campaigns. Besides the development and application of solutions, the data mining process should encompass an ongoing learning environment that provides the means for continuous business improvement.

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Implementation and Tracking,to marketing. For example, the development of credit-risk models could be applied in the operations area; the output of these models consists of the risk segments that are associated with these customers. In applying solutions, the most important consideration is to ensure that the solution is being

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Value-Based Segmentation and the Use of CHAID,oping a segmentation strategy is based on value. The key and ultimately the largest challenge in this type of exercise is the identification of metrics and measures that comprise value. Once these measures and metrics are identified, a value result is built for each customer record. The results of t

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Black Box Analytics,skepticism and doubts are now embraced by many organizations. Yet, from a practitioner’s perspective, some solutions are easier to understand than others. The challenge for the practitioner is to communicate with the business end user in such a way that the end user knows how to use and apply the so

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