tag:blogger.com,1999:blog-32202893.post5468468693795942833..comments2023-10-18T08:32:17.510-07:00Comments on Kevin Hillstrom: MineThatData: 49 Vital Multichannel Modeling Tips For Analysts And StatisticiansUnknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-32202893.post-47458188933408546352009-04-20T08:52:00.000-07:002009-04-20T08:52:00.000-07:00Good ideas!Good ideas!MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-89180425180557918872009-04-20T08:48:00.000-07:002009-04-20T08:48:00.000-07:00Nice list Kevin. I'm sure there are a lot of addit...Nice list Kevin. I'm sure there are a lot of additional tips. <br /><br />I'll add a couple I have found useful and have been using as of late (they both center around modeling expected monetary value):<br /><br />1. Consider a generalized linear model with a log link and gamma error distribution. Often works much better than OLS (in prediction accuracy as well as making more sense for the posible values of the distribution).<br />2. Research something called a zero inflated gamma. It is a combination of logistic regression and gamma regression. It gets around that thorny problem of modeling expected value when there are zeros (i.e customers not responding, ordering). Useful for modeling and hypothesis testing differences in treatment effects.<br /><br />Cheers!Jeffhttps://www.blogger.com/profile/17017204540630564477noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-90834929159960111772009-04-20T08:45:00.000-07:002009-04-20T08:45:00.000-07:00Factor Analysis is often use to reduce dimensions ...Factor Analysis is often use to reduce dimensions and eliminate a bunch of correlated variables.<br /><br />For instance, if you include categorized referring URLs into your analysis, you might find that customers who come from social media sites are mutually exclusive from customers who come from search (i.e. those from Twitter are "drive by" visitors/purchasers), and that search customers are similar to customers who respond to e-mail, and that e-mail customers are different from those who respond to catalogs.<br /><br />You look at the first 2-3 dimensions that come out of a Factor Analysis, and look to see what variables comprise those factors.<br /><br />Essentially, the Factor Analysis reduces all of the redundancy in your customer database into a few uncorrelated dimensions.MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-82962351387818589182009-04-20T08:38:00.000-07:002009-04-20T08:38:00.000-07:00"Very interesting findings await the multichannel ..."Very interesting findings await the multichannel statistician who runs a Factor Analysis."<br /><br />Can you give a couple examples of how a factor analysis has been used in multi channel marketing and what an example take away has been? I am familiar with the technique.<br /><br />Thanks!Anonymousnoreply@blogger.com