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The Path to Individual Customer Marketing—Part 2

Customer Behavior Modeling: Scoring to Target Individuals

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Introduction:

Modelling is the development of algorithms based upon both the past behaviour of customers and demographic information that will predict their likelihood of behaving in a particular manner in the future. This can be their tendency to respond to an offer, to make a purchase, to make additional purchases or to upscale, and so on.

The sophistication of these models is variable. It is possible to start simply and progressively add complexity. The aim is to perform better than you are currently doing; the greatest mistake is to do nothing.