This article was updated on March 12, 2024.
The number of decisions that a business must make in the marketing space is on the rise. Which audience to target, what is the best method of communication, which marketing campaign should they receive? To stay ahead, a growing number of businesses are embracing artificial intelligence (AI) analytics, machine learning, and mathematical optimization in their decisioning models and strategies.
What is an optimization model?
While machine learning models provide predictive insights, it’s the mathematical optimization models that provide actionable insights that drive decisioning. Optimization models factor in multiple constraints and goals to leave you with the next best steps. Each step in the optimization process can significantly improve the overall impact of your marketing outreach — for both you and your customers.
Using a mathematical optimization software, you can enhance your targeting, increase response rates, lower cost per acquisition, and drive engagement. Better engagement can lead to stronger business performance and profitability. Here are a few key areas where machine learning and optimization modeling can help increase your return on investment (ROI):
- Prospecting: Advanced analytics and optimization can be used to better identify individuals who meet your credit criteria and are most likely to respond to your offers. Taking this customer-focused approach, you can provide the most relevant marketing messages to customers at the right time and place.
- Cross-sell and upsell: The same optimized targeting can be applied to increase profitability with your existing customer base in cross-sell and up-sell opportunities. Gain insights into the best offer to send to each customer, the best time to send it, and which channel the customer will respond best to. Additionally, implement logic that maintains your customer contact protocols.
- Retention: Employing optimization modeling in the retention stage helps you make quicker decisions in a competitive environment. Instantly identify triggers that warrant a retention offer and determine the likelihood of the customer responding to different offers.
LEARN MORE: eBook: Debunking the top 5 myths about optimization
Gaining insight and strengthening decisions with our solutions
Experian’s suite of advanced analytics solutions, including our optimization software, can help improve your marketing strategies.
Use our ROI calculator to get a personalized estimate of how optimization can lift your campaigns without additional marketing spend. Start by inputting your organization’s details below.
Learn more about how optimization modeling can help you achieve your marketing and growth goals.
