The Path to Individual Customer Marketing—Part 3

What Is Time to Event Modelling? Time to Event Modelling predicts the changing likelihood of a customer taking an action over time. For retailers, this action may be: making a purchase; making a purchase of a particular level of value; making a purchase of a particular type of merchandise; or lapsing. The model will take into account price, product associations, demographic factors and external influences on the event. These include: competitive activity; seasonal factors and the macro economy. The key is that each of these factors is considered in the time dimension. For example: How long has it been since the last purchase of a related product; how long since the customer responded to an offer; in which month of the year do they purchase most?