Response transformation and profit decomposition for revenue uplift modeling

Robin Marco Gubela, Stefan Lessmann, Szymon Jaroszewicz

Abstract: Highlights•We introduce uplift modeling for revenue maximization.•A response transformation enables uplift modeling using standard classifiers.•We propose a decomposition of campaign profit for uplift modeling.•We provide a broad empirical evaluation of revenue uplift models in e-commerce.•Our new uplift strategy outperforms several causal machine learning algorithms.