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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.

Ch. 4. Providing the Next Best Offer

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This decision tree shows up- and cross-sells for CarActive.
What I like about decision trees is that the model allows for different measurement levels, it does not exclude anyone. It even finds a way to include missing values, which is of course a major disadvantage in f.x. logistic regression - especially if the data set is small.

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