Background:
American Medical Association (AMA) treated all its prospects very similarly in terms of marketing outreach. There was no way to define premium prospects other than a physician’s prior year membership.
Model and Use:
My model used logistic regression and decision tree to identify key predictive variables for acquisition and retention. Model validation and field testing conclusively validated the model. Then, using those and other criteria, I developed 4 tiers (see the picture below). The bottom and the ultimate tiers received fewer direct mail solicitation and fewer calls, while the enhanced and the middle received extra resources. Moreover, as a result of this optimization more funds become available for digital ads.
