3 Ways to Improve Your Targeted Marketing with Analytics
Introduction
Targeted marketing is a simple concept, but a key element in a marketing strategy. The goal is to identify the potential customers who are most likely to buy what you are selling. Once you have identified this target group of people, you can focus your marketing efforts in their direction. This process could substantially decrease marketing costs. In this tutorial, you will use data from a Portuguese banking institution whose goal is to cut down on their telemarketing costs1. They want to call only the clients most likely to subscribe to a long-term deposit. By using modern data mining approaches
(TreeNet, MARS, and RandomForests), you will build a model to successfully identify which customers to target and explore the characteristics of this market.

Tutorial
1) Open SPM®:

1

[Moro et al., 2014] S. Moro, P. Cortez and P. Rita. A Data-Driven Approach to Predict the Success of Bank Telemarketing. Decision
Support Systems, Elsevier, 62:22-31, June 2014

2) Click the folder shortcut

to open a data file:

3) Locate bank.csv (or your chosen file name) and click Open.

The Activity Window, pictured below, will appear:

This file contains 41,188 records of telemarketing calls at the Portuguese bank. On the left side of the Activity Window, you can see the variables in the data file. These include attributes of the prospect (i.e. age, marital status, education), economic indicators (i.e. consumer price index, employment numbers), and campaign variables (i.e. type of contact, date of last contact). At the bottom of the Activity Window, a row of buttons gives you options to view the data, create graphs, and run statistics, among other features.

4) At the bottom of the Activity Window, click the View Data button:

The spreadsheet pictured below will appear with the