Who Let the Dogs Out? How Ignoring Certain Customer Types is Improving Treatment Assignment Policies
Paper Type
Complete
Paper Number
1690
Description
The huge amounts of data available to businesses seeking to increase their customers' response rate have created the field of uplift modeling. This research field aims to optimize treatment assignment policies, based on the differentiation of four customer groups. In this paper, we argue that not all four groups necessarily exist in every campaign context. We show that ignoring one of these groups (the sleeping dogs) can lead to a better-performing marketing campaign. This study presents a twofold contribution: (1) a review of uplift modeling research and analysis of a fashion brand dataset, demonstrating the negligible presence of sleeping dogs in certain non-contractual settings, and (2) a proposal of an efficient method leveraging this absence, showcasing its efficacy against existing state-of-the-art approaches. This study aims to optimize treatment assignment policies and enhance campaign profitability by offering insights into the application of uplift modeling.
Recommended Citation
Seidel, Patrick; Beyer, Henri; Rößler, Jannik; and Schoder, Detlef, "Who Let the Dogs Out? How Ignoring Certain Customer Types is Improving Treatment Assignment Policies" (2024). PACIS 2024 Proceedings. 9.
https://aisel.aisnet.org/pacis2024/track03_ba/track03_ba/9
Who Let the Dogs Out? How Ignoring Certain Customer Types is Improving Treatment Assignment Policies
The huge amounts of data available to businesses seeking to increase their customers' response rate have created the field of uplift modeling. This research field aims to optimize treatment assignment policies, based on the differentiation of four customer groups. In this paper, we argue that not all four groups necessarily exist in every campaign context. We show that ignoring one of these groups (the sleeping dogs) can lead to a better-performing marketing campaign. This study presents a twofold contribution: (1) a review of uplift modeling research and analysis of a fashion brand dataset, demonstrating the negligible presence of sleeping dogs in certain non-contractual settings, and (2) a proposal of an efficient method leveraging this absence, showcasing its efficacy against existing state-of-the-art approaches. This study aims to optimize treatment assignment policies and enhance campaign profitability by offering insights into the application of uplift modeling.
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