Heterogeneous Causal Learning for Effectiveness Optimization in User Marketing
User marketing is a key focus of consumer-based internet companies. Learning algorithms are effective to optimize marketing campaigns which increase user engagement, and facilitates cross-marketing to related products. By attracting users with rewards, marketing methods are effective to boost user activity in the desired products. Rewards incur significant cost that can be off-set by increase in future revenue. Most methodologies rely on churn predictions to prevent losing users to make marketing decisions, which cannot capture up-lift across counterfactual outcomes with business metrics. Other predictive models are capable of estimating heterogeneous treatment effects, but fail to capture the balance of cost versus benefit. We propose a treatment effect optimization methodology for user marketing. This algorithm learns from past experiments and utilizes novel optimization methods to optimize cost efficiency with respect to user selection. The method optimizes decisions using deep learning optimization models to treat and reward users, which is effective in producing cost-effective, impactful marketing campaigns. Our methodology demonstrates superior algorithmic flexibility with integration with deep learning methods and dealing with business constraints. The effectiveness of our model surpasses the quasi-oracle estimation (R-learner) model and causal forests. We also established evaluation metrics that reflect the cost-efficiency and real-world business value. Our proposed constrained and direct optimization algorithms outperform by 24.6% compared with the best performing method in prior art and baseline methods. The methodology is useful in many product scenarios such as optimal treatment allocation and it has been deployed in production world-wide.
Code (0)
등록된 구현이 없습니다.
Tasks
counterfactualMarketingSimilar Papers 제목 키워드 기반
Heterogeneous Causal Learning for Optimizing Aggregated Functions in User Growth
User growth is a major strategy for consumer internet companies. To optimize costly marketing campaigns and maximize user engagement, we propose a novel treatment effect optimization methodology to enhance user growth ma…
Direct Heterogeneous Causal Learning for Resource Allocation Problems in Marketing
Marketing is an important mechanism to increase user engagement and improve platform revenue, and heterogeneous causal learning can help develop more effective strategies. Most decision-making problems in marketing can b…
Decision MakingMarketingDecision Focused Causal Learning for Direct Counterfactual Marketing Optimization
Marketing optimization plays an important role to enhance user engagement in online Internet platforms. Existing studies usually formulate this problem as a budget allocation problem and solve it by utilizing two fully d…
counterfactualMarketingCausal Inference under Threshold Manipulation: Bayesian Mixture Modeling and Heterogeneous Treatment Effects
Many marketing applications, including credit card incentive programs, offer rewards to customers who exceed specific spending thresholds to encourage increased consumption. Quantifying the causal effect of these thresho…
Causal InferenceIterative Causal Segmentation: Filling the Gap between Market Segmentation and Marketing Strategy
The field of causal Machine Learning (ML) has made significant strides in recent years. Notable breakthroughs include methods such as meta learners (arXiv:1706.03461v6) and heterogeneous doubly robust estimators (arXiv:2…
Decision MakingMarketingSegmentation