What is “Targeting Algorithms” ?

Management Dictionary
Marketing, Sales and Communication

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Nonprofits have long faced the challenge of balancing their books when they simultaneously seek to retain existing donors and acquire new donors. Nonprofit targeting of existing donors can be done, in principle, using their past donation data. However, for new donors, such data is either not available or might be difficult to procure from secondary sources. What should the nonprofits do ? We suggest 2 alternatives.

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Keywords

Accuracy of predictions, Backward induction and forward simulation, Behavioral predictions, Customer response to targeting, Frequency and value of response, Geographic profiling, Information update, Multi-arm bandit problems, Sequential decision making algorithms, Tradeoff between revenue and learning

Author(s)

SINHA Shameek
Teacher-Researcher
EMLV

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