Model Development

Agree on the behavior you’re trying to predict. Housefile models can be designed to predict virtually any behavior, such as response to a promotion, demand dollars, credit risk, returns, product category purchases, etc.

Define the housefile segments that are candidates for modeling. Traditionally, unique and separate models are built for different segments. For example, three separate models could be built to rank one-time direct-channel buyers, two-time-plus direct buyers and retail buyers.