Use uplift modeling to drive incrementality

Marketers are tasked with driving incremental sales. Baseline sales to customers who would buy without advertising or promotion are excluded from ROI calculations. Uplift modeling (aka incremental modeling) improves targeted marketing campaign ROIs by identifying customers who are likely to buy only through persuasion.

Uplift modeling improves on propensity model ROIs by removing those customers who are likely to buy regardless of advertising and promotion. Uplift modeling factors in past exposure and response to marketing activity on top of a customer’s propensity to buy based on data like demographics, browsing history, and purchase history. As a result, audience selection can be informed by scoring a customer file for predicted incremental sales.