Sample Cases:

Business Case 1 (Propensity Modeling, List Selection)

Ginger & Roger Ballroom Dance studio is interested in increasing profit by attracting future brides to engage in dance lessons prior to their wedding. Six months ago, the dance school purchased a list from a Wedding Registry Company and they mailed a discounted coupon featured as a wedding gift to potential customers ages 20 to 45. After three months of activity, the response and sales data were appended to the original list and analyzed. As a result, the dance studio plans to build a propensity model to target brides inclined to respond with sales exceeding $29.99.

Business Case 2 (Lifetime Value Modeling)

Save the O'Pooch is a non-profit institution that relies on donor contributions to help find perfect homes for older stray dogs. The organization is interested in maximizing the lifetime donor value for each of their contributors. The group has just completed the calculation of donor lifetime value and is now ready to build a LTV (Lifetime Value) model to predict the expected lifetime value for each customer in the database. Once the expected LTV is scored for each customer, the organization will be able to develop an effective fundraising strategy that tailors to different levels of lifetime value segments in order to steer each prospect toward their maximum lifetime value.

Business Case 3 (Target & Response Modeling)

Loan$2U, a major home mortgage lender, wished to double its market share within one year. Loan$2U merged internal and external data sources, and applied statistical methodologies including linear regression and CHAID analysis to this combined data. As a result, Loan$2U was able to isolate those factors most highly predictive of loan acceptance & adjust its business policies accordingly. Contacts to prospective customers least likely to accept the loan offer were suppressed, facilitating more effective target marketing and priority handling to those more likely to accept the loan offer. The net impact was an increased response rate with decreased operational costs, significantly boosting the profit margin of Loan$2U and increasing its market share.







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