By building a budget up from zero in this fashion, BAT achieves a budget allocation optimisation, and can present this at a level of tactic much lower than that provided by an econometric model. We often find ourselves dealing with say six or seven channels, and perhaps a 100 lower level treatments which may represent specific media below that.
RFM, or ‘recency frequency monetary value’ to give it its full name, has long been the targeting tool of choice for the home shopping industry; so we decided to give it a challenge by building as an alternative a propensity model using exactly the same data set. An RFM score will describe the overall strength[…]
For many senior marketers, managing the customer recruitment budget is one of the biggest challenges they face. This white paper explains a new approach, based on practical experience in a number of different vertical markets; and which relies on first understanding the whole multi-channel recruitment ecosystem, and then modelling how the different components act and[…]