Discovering direct mailing strategy through data mining

Pao Yue-kong Library Electronic Theses Database

Discovering direct mailing strategy through data mining


Author: Choi, Pik-lee Berry
Title: Discovering direct mailing strategy through data mining
Degree: M.Sc.
Year: 2002
Subject: Hong Kong Polytechnic University -- Dissertations
Direct-mail fund raising
Direct marketing
Data mining
Mailing lists
Department: Dept. of Computing
Pages: 73 leaves : ill. ; 30 cm.
InnoPac Record:
Abstract: Direct mail is broadly employed as a major marketing tool in most organizations to recruit new customers, renew and upgrade existing customers. However, it is a common problem that marketers find it difficult to select the most likely prospects and decide the appropriate criteria on selecting the prospects. On the other hand, even small improvements in the yield for a mailing can mean substantial profits, as direct mailing is to use customer information for the development of an ongoing, continuous relationship with each individual in the mailing database. Therefore, it leads the marketers to search for the most effective methods dealing with this direct mailing problem. Recently, there have been increasingly research activities proposing data mining as one of the solutions, as data mining is the process of nontrivially extracting implicit and potentially useful information from data in database. In our study, we successfully use data mining to construct the models to predict the respondents of the direct mail campaigns and also the contributions of the respondents. As a result, we can yield over 80% of the total profits by sending only 35% of the mailings. From the rules, we identify the prospective variables characterizing respondents and non-respondents so as to develop more appropriate criteria on selecting the prospects and excluding the least likely prospects. Besides, the study also reveals the good indicators for the selection of the most generous donors. After we have more understandings on the profiles of the respondents and the non-respondents, we suggest the strategies for the direct mailing campaigns. Data collected from a large charity organization is used for the demonstrations.

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