Segmentation and Shrinkage
In our last post, we introduced the idea of shrinkage. In this post we are going to extend that idea to improve our results when we segment our data by customer. Often what we really want is to discover what digital…
Category
Personalization
Prediction, Pooling, and Shrinkage
As some of you may have noticed, there are often little skirmishes that occasionally break out in digital testing and optimization. There are the AB test vs multi-armed bandits debate (both are good, depending on task), standard vs multivariate testing…
Predictive Targeting: Managing Complexity
Personalization, one to one, predictive targeting, whatever you call it. Serving the optimal digital experience for each customer is often touted as the pinnacle of digital marketing efficacy. But if predictive targeting is so great, why isn’t everyone doing it…