Data Scientists: Explore Game Theory to Boost Customer Engagement | The Big Data Hub

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Data scientists may consider themselves fish out of water when it comes to applying game-theoretic approaches to customer engagement. Nevertheless, it provides a valuable set of approaches for behavioral analytics.

Duane Tilden‘s insight:

>Customer engagement is a bit of a game, because, deep down, it’s a form of haggling and bargaining. Let’s be blunt: everybody has an ulterior purpose and is manipulating the other party in that direction. The customer is trying to get the best deal from you, and you’re trying to hold onto them and sell them more stuff at a healthy profit.

Customer engagement is not solitaire, and, unlike many online games, it always has very real stakes. By its very nature, customer engagement is an interactive decision process involving individuals and organizations, entailing varying degrees of cooperation and conflict in the course (hopefully) of a stable and mutually beneficial outcome.

Game theory is a modeling discipline that focuses on strategic decision-making scenarios. It leverages a substantial body of applied mathematics and has been used successfully in many disciplines, including economics, politics, management and biology. There has even been some recent discussion of its possible application in modeling customer-engagement scenarios to improve loyalty, upsell and the like.

Customer engagement modeling is a largely unexplored frontier for game theory. The literature on this is relatively sparse right now, compared to other domains where game theory’s principles have been applied. […]<

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Predictive Analytics And The Power of Prediction – Small Business Trends

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Predictive Analytics And The Power of Prediction
Small Business Trends
Another interesting correlation experiment is the “Anxiety Index,” a correlation of blog mentions against S&P 500 performance. Fun correlated …

Duane Tilden‘s insight:

>“PA [predictive analytics]  in and of itself does not invade privacy – its core process is the opposite of privacy invasion. Although it’s sometimes called data mining, PA doesn’t “drill down” to peer at any individual’s data. Instead, PA actually “rolls up” learning patterns that hold true in general by way of rote number crunching across the masses of customer records.”<

See on smallbiztrends.com