Qini-based Uplift Regression
Abstract
Uplift models provide a solution to the problem of isolating the marketing effect of a campaign. For customer churn reduction, uplift models are used to identify the customers who are likely to respond positively to a retention activity only if targeted, and to avoid wasting resources on customers that are very likely to switch to another company. We introduce a Qini-based uplift regression model to analyze a large insurance company's retention marketing campaign. Our approach is based on logistic regression models. We show that a Qini-optimized uplift model acts as a regularizing factor for uplift, much as a penalized likelihood model does for regression. This results in interpretable parsimonious models with few relevant xplanatory variables. Our results show that performing Qini-based parameters estimation significantly improves the uplift models performance.
Keywords
Cite
@article{arxiv.1911.12474,
title = {Qini-based Uplift Regression},
author = {Mouloud Belbahri and Alejandro Murua and Olivier Gandouet and Vahid Partovi Nia},
journal= {arXiv preprint arXiv:1911.12474},
year = {2020}
}