Stochastic Solutions: What · Why · Whom
Far better an approximate answer to the right question, which is often vague, than the exact answer to the wrong question, which can always be made precise. --- John Tukey

Lots of people can build customer behaviour models for you, or audit your analytical marketing, or discuss your customer management strategy. Most of them are bigger and better known than Stochastic Solutions. So why us?

What we're best at is aligning all the maths and stats and technologies that businesses use to deliver effective customer management towards the organization's goals. We can engage across the full spectrum, from setting good marketing goals through accurate measurement of success to segmentation, modelling and optimization. In short, we concentrate on asking the right questions. Often, that leads to a change of goal and problem formulation. When it does, sometimes the same methods suffice to tackle the new formulation, and sometimes new or different methods are needed; if they are, we develop or find those.

We have to find a way of making the important     measurable instead of making the measurable important.     --- Robert McNamara

It is axiomatic that marketing activity needed to be systematically measured; the trick is to measure and focus on the right things.

A concrete example of this is marketing models, which almost always focus on the wrong thing. We developed and use uplift modelling for cross-selling and retention. Uplift models allow marketers to focus resources on the people whose behaviour is most positively influenced by the activity, rather than wasting resources on people who are either not affected by or worse, are actually negatively influenced by the intervention.

If this sounds like what ordinary "response models" are supposed to do, that's because the name "response model" is misleading. This is a perfect example of asking a better question, realising that standard methods don't answer it, and then developing new algorithms and measures to allow the better formulation to be tackled.

We feel justified in claiming that, almost uniquely, in the context of direct marketing, we can actually address John Wanamaker's lament:

I know half of my spend on advertizing is wasted;   the trouble is, I don’t know which half. --- John Wanamaker