This article was written after this article ran describing how “predictive modeling techniques outperformed Recency-Frequency-Monetary value (RFM) targeting in a back-to-school campaign.”  I received a ton of e-mail asking for an explanation of this confusing claim.

For those of you not well versed in what behavioral modeling is all about, this article provides a look inside and addresses some very Frequently Asked Questions on modeling.

For those looking for some resolution on issues brought up in the DM news article, I decided to just write this response and point all the queries to it (saves much typing!).  Thanks to all the fellow Drillers out there who thought there was something a bit off in this article.

Continue reading “RFM versus Predictive Modeling by Jim Novo”