Measuring Campaign Performance by Using Cumulative Gain and Lift Chart

Overview

The primary goal of a Direct Mail marketing (DM) campaign is to send mailers to group of customers who are likely to respond. To determine the likely responders for the offer, it is a common practice to build predictive models based on past experience, using historical data. It is not unusual to evaluate the campaign performance by comparing the results with the model. In this study, lift charts and cumulative gains have been used to measure the effectiveness of several marketing campaigns for telecom strategic products. The results provide important insights into the model, as well as performance measurement. This identifies the best customers and helps improve the profitability of subsequent campaigns.