- Modeling is difficult :
Wrong ! You are a marketer, so you do not have to do the modeling yourself.
Find or hire a data-loving whizzkid with a solid analysis background. He/she will do the hard work for you
- Models are to expensive :
Wrong ! Wrong for two reasons :
1. The tools are actually free (download R or Weka from the internet)
2. The model pays itself if you use it in one or multiple campaigns
- Models are black boxes :
Right ! But that doesn’t mean they are not useful !
Do you know exactly how your PC works ? Your TV set ? Your car ?
- I am not sure the models will work :
Wrong ! Just ask the whizzkid to test the model with real-life data, that he did not use for modelling. He can make you a nice chart, showing that the top selected customers do much better than the others.
- It is impossible to explain the models to the sales people :
Right ! Because the models are black boxes.
Wong ! Ask your whizzkid to give you the three most significant variables of the model and communicate these to your sales people.
(Not so black-box after all !)
- selections based on the model are to heterogeneous / targets do not match our campaign materials (banners, ads …) :
Wrong ! OK, sometimes heterogeneous perhaps, but who said you have to communicate to all of them in the same way ? All you have to do is segment the selection with a communication goal in mind (talk to your whizzkid)
- the selection will become to complicated :
Wrong ! The selection becomes simpler ! Only use the model score as the selection criterion (besides other “administrative criteria”).
- I did it for years without data mining models. Why change ? :
So Sad ! You need to change, otherwise the competition will leapfrog you !
- The expected returns based on the model data are way to low. I want to get more out of my campaign! : Unrealistic ! Ask your whizzkid to compare the expected returns from the model with those from your own selection criteria. Then let the data decide !
A decent data mining model allways outperforms man-made selection rules.
- My job is to spend the campaign budget. I do not care about the results (nobody else does anyway) :
So sad ! You make life easy for your competitors !
You can also view this list as a free to download presentation