Over this blog series: “The Journey toward direct marketing optimization” I have covered all the topics that are part of the optimization process. As said before, however, the most impactful part in an optimization problem is to set the constraints. If a company does not have any type of boundaries when selecting and contacting customers, then there is no optimization problem at all.
As a customer intelligence advisor, I have never worked with a company that does not have some contact policy restrictions. Most marketing teams do manage customer saturation and choose not to contact their customers more than certain number of times during a period. Another frequent constraint is channel capacity, particularly call center capacity. Most companies choose this channel as it is usually more effective, but it is also the more restrictive.
In the example used in the first article “The Journey toward direct marketing optimization” I already introduced two different type of constraints: contact policy and amount of targets per offer. In this last stop before we reach the destination, I will go deeper into restrictions and how they influence the optimized results. As in SAS Marketing Optimization restrictions are classified as business constraints and contact policies constraints, I will use the same categories.
Observing Contact Policies
In order to cover this type of restrictions, I will use the same simple example used at the beginning of these series of articles.
Remember that if there were no constraints, we could have an expected profit of 265, the sum of all the possible offers for all the customers. Read More