Term
| what are the 5 phases of the customer lifecycle |
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Definition
prospects
responders
new customers
established customers
former customers |
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Term
| describe event based relationships |
|
Definition
rely on geography, product and time
user data may be missing
channels to reach customer: Advertising, viral marketing |
|
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Term
| describe subscription based relationships |
|
Definition
better chance in getting customer demographics
billing relationship offers better chance at cross/up selling.
email marketing messages become more important |
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Term
| What are challenges in using past data |
|
Definition
prospect base may change over time
expansion brings in prospects who aren't similar to original customers
product changes
competition |
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Term
| What are some challenges in identifying the customer acquisition date |
|
Definition
sales date may be different from payment date
return period
fraudulent transactions |
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Term
| How does data mining increase customer value? |
|
Definition
Up/cross selling
customer stimulation
increase usage
prevent from defecting
Winback |
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Term
| What is the data mining role in prospecting |
|
Definition
identifying good prospects
choosing right communication channel
picking appropriate marketing message |
|
|
Term
| how is propensity typically measured |
|
Definition
| as an estimate of the likelihood of the response (I.E. picking top 100 prospects that may respond) |
|
|
Term
| how are gains vs penetration measured? |
|
Definition
|
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Term
| what are some considerations for response models |
|
Definition
spending money on those who may become a customer without the offer
start tracking customers before they become customers
source of interaction (marketing channel)
get more information at the time of acquisition |
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Term
| what are some useful data fields for prospects |
|
Definition
demographics
geographic info
initial purchase date
initial acquisition channel
offer responded to
initial product
credit score
time to respond |
|
|
Term
| what are some applications of data mining |
|
Definition
target new customers
matching campaign to customers
reducing exposure to credit risk
discovery and recommendations
right time of an offer
retention |
|
|
Term
| what are some reasons for attrition |
|
Definition
|
|
Term
| what are some considerations for rentention |
|
Definition
predicting who will leave
predicting how long they will stay
cohort analysis |
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