Determining the direct mailing frequency with dynamic stochastic programming

Both in business to business and in consumer markets direct mailings are an important means of communication with individual customers. This paper studies the mailing frequency problem that addresses the issue of how often to send a mailing to an individual customer in order to establish a profitable long-term relationship rather than targeting profitable groups of customers at every new mailing instance. The mailing frequency is optimized using long-term objectives but restricts the decisions to the number of mailings to send to the individual over consecutive finite planning periods. A stochastic dynamic programming model that is formulated for this problem is easy to solved for many applications in direct mailing. A particular implementation of the model will provide the direct mailer with controls to stimulate desired response behavior of their customers. The model is calibrated for a large non-profit organization and shows that very large improvements can be achieved by approaching the mailing strategy with the mailing frequency problem, both in the number of mailing to send and in the profits resulting from the responses.Direct marketing;Stochastic dynamic programming

Application of calibration masks to TV vidicon tube

Photographic application method devised for overlaying test pattern masks on TV camera vidicon tubes prints the mask within 0.0076 cm of the vertical and horizontal center lines of the tube face. Entire process, including mask fabrication and alignment procedure, requires less than 10 minutes

Wind and boundary layers in Rayleigh-Benard convection. Part 2: boundary layer character and scaling

The effect of the wind of Rayleigh-Benard convection on the boundary layers is studied by direct numerical simulation of an L/H=4 aspect-ratio domain with periodic side boundary conditions for Ra={10^5, 10^6, 10^7} and Pr=1. It is shown that the kinetic boundary layers on the top- and bottom plate have some features of both laminar and turbulent boundary layers. A continuous spectrum, as well as significant forcing due to Reynolds stresses indicates undoubtedly a turbulent character, whereas the classical integral boundary layer parameters -- the shape factor and friction factor (the latter is shown to be dominated by the pressure gradient) -- scale with Reynolds number more akin to laminar boundary layers. This apparent dual behavior is caused by the large influence of plumes impinging onto and detaching from the boundary layer. The plume-generated Reynolds stresses have a negligible effect on the friction factor at the Rayleigh numbers we consider, which indicates that they are passive with respect to momentum transfer in the wall-parallel direction. However, the effect of Reynolds stresses cannot be neglected for the thickness of the kinetic boundary layer. Using a conceptual wind model, we find that the friction factor C_f should scale proportional to the thermal boundary layer thickness as C_f ~ lambda_Theta, while the kinetic boundary layer thickness lambda_u scales inversely proportional to the thermal boundary layer thickness and wind Reynolds number lambda_u ~ lambda_Theta^{-1} Re^{-1}. The predicted trends for C_f and \lambda_u are in agreement with DNS results

Direct Mailing Decisions for a Dutch Fundraiser

Direct marketing firms want to transfer their message as efficientlyas possible in order to obtain a profitable long-term relationshipwith individual customers. Much attention has been paid to addressselection of existing customers and on identifying new profitableprospects. Less attention has been paid to the optimal frequency ofthe contacts with customers. We provide a decision support system thathelps the direct mailer to determine mailing frequency for activecustomers. The system observes the mailing pattern of these customersin terms of the well known R(ecency), F(requency) and M(onetary)variables. The underlying model is based on an optimization model forthe frequency of direct mailings. The system provides the directmailer with tools to define preferred response behavior and advisesthe direct mailer on the mailing strategy that will steer thecustomers towards this preferred response behavior.decision support system;direct marketing;Markov decision process

Evaluating Direct Marketing Campaigns: recent findings and future research topics

This paper contains a survey of the recent literature on the evaluation of direct marketing campaigns. We give an outline of the various stages included in such a campaign. Next, we review the statistical methods most frequently used and we review the general findings from using these methods.direct marketing;target selection;evaluation;quantitative models