The Mutual Insurance Company
(MIC) is an insurance
company that sells insurance policies to
private clients and small and medium
enterprises. A large share of the
marketing budget is spent on direct
marketing activities. In direct marketing
campaigns, clients receive a personal
letter, offering specific insurance
products.
It is noticed that recent
marketing campaigns show a low response
of about 1 percent. This indicates the
need for a more effective set-up of
direct marketing campaigns and the
marketing division has evaluated several
direct marketing campaigns.
The question comes up
whether this can be realised by better
targeting the campaigns. If MIC knows
which clients are susceptible for buying
a specific product, the campaign response
can increase against reduced costs.
The Caravan Policy Case
shows how Machine Learning can be used to
identify and describe certain types of
customers and to select people who are
probable to buy a certain type of policy.
