The short answer: you use net lift modeling. Or as SAS called it when we released it as part of SAS Enterprise Miner 7.1 M1 at the end of 2011, incremental response modeling. Eric Siegel gave an interesting keynote on this topic at Predictive Analytics World San Francisco, "Persuasion by the Numbers:
Author
At Predictive Analytics World San Francisco this week I attended back to back sessions on econometrics, a word that doesn’t surface as often as I think it should. Bestselling books like Freakonomics: A Rogue Economist Explores the Hidden Side of Everything or Predictably Irrational: The Hidden Forces That Shape Our
Neil Biehn of PROS, Erick Wikum of IBM Global Services, Eric Bibelnieks of Target, and Warren Hearnes of Home Depot shared their experiences selling analytics – both internally within their own organizations and externally to customers – on a panel this afternoon. A few random tips on this challenge:
Keith Collins, Sr. Vice President and Chief Technology Officer of SAS, opened his plenary talk at INFORMS today reporting the dream he woke up to this morning. In that sleepy state upon awakening he pictured researchers on Antarctica, and as consciousness came to him he tried to determine the signficance.
I attended a session bright and early this morning on Adoption of Analytics and OR Methods, and one of the primary topics was barriers to this adoption, the thorniest of which were people problems. My colleague Gary Cokins from SAS categorized barriers to adoption of optimization and advanced analytics into
“Wise Enterprise: Best Practices for Managing Predictive Analytics” was the title, and the assignment to the panel at the recent Predictive Analytics World conference in New York was to share “poignant moments of failure.” Wayne Thompson from SAS began, going back ten years to describe a network intrusion project. He