Modeling Customer Response (Decision List)

The Decision List algorithm generates rules that indicate a higher or lower likelihood of a given binary (yes or no) outcome. Decision List models are widely used in customer relationship management, such as call center or marketing applications.

This example is based on a fictional company that wants to achieve more profitable results in future marketing campaigns by matching the right offer to each customer. Specifically, the example uses a Decision List model to identify the characteristics of customers who are most likely to respond favorably, based on previous promotions, and to generate a mailing list based on the results.

Decision List models are particularly well suited to interactive modeling, allowing you to adjust parameters in the model and immediately see the results. For a different approach that allows you to automatically create a number of different models and rank the results, the Auto Classifier node can be used instead.

This example uses the stream pm_decisionlist.str, which references the data file pm_customer_train1.sav. These files are available from the Demos directory of any IBM® SPSS® Modeler installation. This can be accessed from the IBM SPSS Modeler program group on the Windows Start menu. The pm_decisionlist.str file is in the streams directory.

Next