Data Mining Approach for Direct Marketing of Banking Products with Profit/Cost Analysis

Mitik M., Korkmaz O., KARAGÖZ P., TOROSLU İ. H., Yucel F.

REVIEW OF SOCIONETWORK STRATEGIES, cilt.11, sa.1, ss.17-31, 2017 (ESCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 11 Sayı: 1
  • Basım Tarihi: 2017
  • Doi Numarası: 10.1007/s12626-017-0002-5
  • Dergi Adı: REVIEW OF SOCIONETWORK STRATEGIES
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI)
  • Sayfa Sayıları: ss.17-31
  • Anahtar Kelimeler: Bank marketing, Direct marketing, Data mining, Naive Bayes, C4.5 decision tree, CRM
  • Orta Doğu Teknik Üniversitesi Adresli: Evet

Özet

Nowadays, many businesses, such as banks, use direct marketing methods to reach customers to minimize the campaigning cost and maximize the return rate. To achieve this, huge customer data should be analyzed to determine the most appropriate product offer for each customer and the most effective channel to reach her/him. However, since only a very small amount of responses collected from the customers are positive to the offers, the dataset is very imbalanced. This decreases sensitivity ratio of prediction results and makes it difficult to make a successful product and channel selection for the offer. In this paper, we propose a hybrid system, which first classifies the customers to decide if s/he is interested in the offered product, and then clusters them for product and channel suggestions. Experiments with real life banking data show very promising accuracy results for predicting the proper product and channel for the customers. Moreover, cost-profit analysis is also added to this problem. Our experiment results show that the proposed method decreases a fraction of the total profit, but since the decrease in the total cost is very large, there is a huge increase in the overall profit/cost ratio.