Profit calculation for churn prevention data mining models
Data Mining is frequently used to optimize costs in marketing scenarios. Most marketing campaigns result in costs and we want these campaigns to be as efficient as possible.
To illustrate this process let's assume we're operating a web shop. Customers need to register before they can order goods and therefore we know how many customers are returning. While we also spend some afford to win new customers, for this example we will focus on keeping the existing ones and making them buy more in our shop.
Tags: data mining