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Predictive Analytics in Commerce

Chapters 5 › Unit 5: More Personal to the Customer View instructions Hide instructions

More Personal to the Customer

Step 1. Build the best possible model

Nienke suggested that you try to build your own cross-sell models for the other products you want to include in the next best offer. Try to first build a couple of trees – or more if you are getting the hang of it!

After you created different decision trees, work with the rank or index method based on your predicted probabilities to determine the next best offer.
(Hint: If you need a little help with these methods, check out the additional material section in the previous unit).


Step 2. Inform your colleagues

Use your model outcomes in a briefing to your colleagues. You want to activate them by showing them the new way of using predictive modelling to derive the Next Best Offer per customer. In this way your company can be more relevant - and thus personal - to the customer. Take them through the most important process-steps.

Easy to understand and execute, resource-demanding when fanning out to multiple products

0 comments

The method's logic and output is easily understandable and helps teams dive right into the decision making process. However, I did not understand how and if bundles of products can be made from this method. Maybe that is for next week's random forest?

Anyway, the tree I produced is not quite finished on CarActive, as I believe one should do all the steps for every product - I did not do that this time. Although I understand the logic and how I should do it.

Here is the tree:
Not quite final version of CarActive decision tree

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