Predictive Customer Analytics

7/21/2019 Predictive Customer Analytics

http://slidepdf.com/reader/full/predictive-customer-analytics 1/21

WHARTON ONLINE

Peter FaderFrances and Pei-Yuan Chia Professor of Marketing

Co-Director, Wharton Customer Analytics Initiative

The Wharton School of the University of Pennsylvania

http://wcai.wharton.upenn.eduTwitter: @faderp

PREDICTIVE CUSTOMER ANALYT



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SETTING THE STAGE…

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HOW MUCH WILL DONORS GIVE IN THE FUTURE?

HOW DOES IT DEPEND ON THEIR PAST PATTERNS?

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WHARTON ONLINE

LET’S FIRST LOOK AT “BOB”:

WHAT CAN WE PREDICT ABOUT HIS GIVING IN 2002-0

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http://slidepdf.com/reader/full/predictive-customer-analytics 5/21WHARTON ONLINE

WHAT CAN WE TELL ABOUT “SARAH”?

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HOW DO “MARY” AND “SHARMILA ” COMPARE?

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WHAT DONATION BEHAVIOR CHA RACTERI STICS

DO WE NEED TO TAKE INTO ACCOUNT?

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DONOR TYPES

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MORE ABOUT RECENCY AND FREQUENCY

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WHARTON ONLINE

WHAT ABOUT “MARY” VERSUS “CHRIS”?

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WHARTON ONLINE

You can “try this at home”



WHARTON ONLINE

“BUY TILL YOU DIE” MODEL

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WHARTON ONLINE

EXCEL IMPLEMENTATION

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EXPECTED # OF DONATIONS IN 2002- 2006



WHARTON ONLINE

EXPECTED # OF DONATIONS IN 2002 2006

AS A FUNCTION OF RECENCY AND FREQUENCY

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WHARTON ONLINE

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ANALYSIS

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WHARTON ONLINE

HOW DO WE KNOW THE MODEL WORKS?

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WHARTON ONLINE

HOW DO WE KNOW THE MODEL WORKS?

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WHARTON ONLINE

A SECOND ILL USTRATION

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PROBABILITY OF BEING “ALIVE”



WHARTON ONLINE

PROBABILITY OF BEING “ALIVE”

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SUMMARY HOW IS THIS ME THOD DIFFEREN T?



WHARTON ONLINE

SUMMARY: HOW IS THIS ME THOD DIFFEREN T?

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WANT MORE?



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WANT MORE?

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DISCUSSION



WHARTON ONLINE

DISCUSSION

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Predictive Customer Analytics

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