1. DMS Modeling– Response &
Conversion Example
Our client needed to mail more efficiently – better
responses and better approvals.
We built a double model, which allowed the client to
select prospects that would be approved by credit
and which would respond favorably to their offers.
2. Financial Services Product for Small Business:
Response Model Performance
EFFICIENCY CURVES - ANALYTIC VS VALIDATION FILES
Graph 1
200
190
180
CUMULATIVE RESPONSE INDEX
170
Analytic File
160
Validation File
150
140
130
120
110
100
1 2 3 4 5 6 7 8 9 10
DECILE GROUPS
3. Financial Services Product for Small Business:
Approval Model Performance
EFFICIENCY CURVES - ANALYTIC VS VALIDATION FILES
Graph 2
200
190
CUMULATIVE APPROVAL INDEX
180
170
Analytic File
160
Validation File
150
140
130
120
110
100
1 2 3 4 5 6 7 8 9 10
DECILE GROUPS
5. Model Results
1. Client mailed fewer solicitations.
2. Response rates on solicitations were higher.
3. More responses were approved.
4. Cost per application dropped by 15%.