Direct Mailing Decisions for a Dutch Fundraiser

28 Pages Posted: 26 Aug 2006

See all articles by Jedid-Jah Jonker

Jedid-Jah Jonker

Social and Cultural Planning Office

Nanda Piersma

University of Amsterdam - Academy for Economic Studies

Rob Potharst

Erasmus University Rotterdam - Department of Computer Science; Erasmus Research Institute of Management (ERIM)

Date Written: December 2, 2002

Abstract

Direct marketing firms want to transfer their message as efficientlyas possible in order to obtain a profitable long-term relationshipwith individual customers. Much attention has been paid to addressselection of existing customers and on identifying new profitableprospects. Less attention has been paid to the optimal frequency ofthe contacts with customers. We provide a decision support system thathelps the direct mailer to determine mailing frequency for activecustomers. The system observes the mailing pattern of these customersin terms of the well known R(ecency), F(requency) and M(onetary)variables. The underlying model is based on an optimization model forthe frequency of direct mailings. The system provides the directmailer with tools to define preferred response behavior and advisesthe direct mailer on the mailing strategy that will steer thecustomers towards this preferred response behavior.

Keywords: decision support system, direct marketing, Markov decision process

JEL Classification: R4, M, M11, M31

Suggested Citation

Jonker, Jedid-Jah and Piersma, Nanda and Potharst, Rob, Direct Mailing Decisions for a Dutch Fundraiser (December 2, 2002). ERIM Report Series Reference No. ERS-2002-111-LIS. Available at SSRN: https://ssrn.com/abstract=371056

Jedid-Jah Jonker (Contact Author)

Social and Cultural Planning Office ( email )

PO Box 16164
NL-2500 BD The Hague
Netherlands

Nanda Piersma

University of Amsterdam - Academy for Economic Studies ( email )

PO BOX 295
1000 AG Amsterdam
Netherlands
+31 20 5236434 (Phone)
+31 20 5236459 (Fax)

Rob Potharst

Erasmus University Rotterdam - Department of Computer Science ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands
+31 10 4081343 (Phone)
+31 10 4089167 (Fax)

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

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