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  • July–August 2024
  • Article

Doing More with Less: Overcoming Ineffective Long-Term Targeting Using Short-Term Signals

By: Ta-Wei Huang and Eva Ascarza
Firms are increasingly interested in developing targeted interventions for customers with the best response, which requires identifying differences in customer sensitivity, typically through the conditional average treatment effect (CATE) estimation. In theory, to... View Details
Keywords: Long-run Targeting; Heterogeneous Treatment Effect; Statistical Surrogacy; Customer Churn; Field Experiments; Consumer Behavior; Customer Focus and Relationships; AI and Machine Learning; Marketing Strategy
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  • 2020
  • Working Paper

Targeting for Long-Term Outcomes

By: Jeremy Yang, Dean Eckles, Paramveer Dhillon and Sinan Aral
Decision makers often want to target interventions so as to maximize an outcome that is observed only in the long term. This typically requires delaying decisions until the outcome is observed or relying on simple short-term proxies for the long-term outcome. Here we... View Details
Keywords: Targeted Marketing; Optimization; Churn Management; Marketing; Customer Relationship Management; Policy; Learning; Outcome or Result
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