Predictive Tactics: Five Database Modeling Strategies

• lifetime value, which examines customers’ past behaviors and looks forward to predict who may be the most valuable customers in terms of sales over time.

The response model is the most basic, and therefore would likely be a starting point for many catalogers, Connors says. “This model gives you, the mailer, answers on whom to mail or not mail so you can narrow your audience, reduce costs and trim circulation. The mail vs. no mail — zero or 1 — outcome you learn from this type of model will give you the biggest bang for your initial modeling investment. You’ll see a difference right away in your response levels and reduced costs.”