Abstract #300787

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JSM 2002 Abstract #300787
Activity Number: 304
Type: Topic Contributed
Date/Time: Wednesday, August 14, 2002 : 10:30 AM to 12:20 PM
Sponsor: Business & Economics Statistics Section*
Abstract - #300787
Title: Scoring Models to Optimize E-Commerce Direct-to-Consumer Communications
Author(s): Moshe Rosenwein*+
Affiliation(s): Merck-Medco Managed Care, L.L.C.
Address: 100 Parsons Pond Road, Franklin Lakes, New Jersey, 07417, USA
Keywords: Scoring Model ; E-Commerce ; Marketing Acquisition
Abstract:

We describe scoring models that support e-commerce direct-to-consumer communications. Advanced statistical methods are applied across specialized datamarts and existing Merck-Medco databases to determine attributes that influence customer behavior. One model was implemented to support a July 2000 direct mail promotion to 500,000 members. For this promotion, response rate, as measured by at least one Web transaction in the six weeks following the promotion date, increased by over 33%, compared with the best, previous promotion of this type. This model has subsequently been used to support four other major direct mail promotions. A lift in Internet Rx sales, due to the use of the model, has also been demonstrated. The scoring models and underlying datamarts may be viewed as a prototype for a Customer Relationship Management (CRM) or campaign management system.

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