Learning from Double Positive and Unlabeled Data for Potential-Customer Identification

TL;DR

This paper introduces a novel double PU learning method to identify potential customers by focusing on interested individuals without strong loyalty, enhancing targeted marketing efficiency.

Contribution

It proposes a new double PU learning algorithm that combines two loss functions for better potential customer identification from limited data.

Findings

The algorithm effectively distinguishes interested but non-loyal customers.

Numerical experiments confirm the method's validity and practical applicability.

Abstract

In this study, we propose a method for identifying potential customers in targeted marketing by applying learning from positive and unlabeled data (PU learning). We consider a scenario in which a company sells a product and can observe only the customers who purchased it. Decision-makers seek to market products effectively based on whether people have loyalty to the company. Individuals with loyalty are those who are likely to remain interested in the company even without additional advertising. Consequently, those loyal customers would likely purchase from the company if they are interested in the product. In contrast, people with lower loyalty may overlook the product or buy similar products from other companies unless they receive marketing attention. Therefore, by focusing marketing efforts on individuals who are interested in the product but do not have strong loyalty, we can achieve more efficient marketing. To achieve this goal, we consider how to learn, from limited data, a classifier that identifies potential customers who (i) have interest in the product and (ii) do not have loyalty to the company. Although our algorithm comprises a single-stage optimization, its objective function implicitly contains two losses derived from standard PU learning settings. For this reason, we refer to our approach as double PU learning. We verify the validity of the proposed algorithm through numerical experiments, confirming that it functions appropriately for the problem at hand.