Adaptive Decision Manager (ADM) uses self-learning models to predict customer behavior. Adaptive models are used in decision strategies to increase the relevance of decisions.
ADM models are self-learning which means that they are automatically updated after new responses have been received. The ADM service captures predictor data and responses and can therefore start without any historical information. You can use adaptive decision management to identify propositions that your customers are most likely to accept, improve customer acceptance rates, or predict other customer behavior.
Adaptive models work by recording all customer responses (both positive and negative) and correlating them to different customer details (for example, age, gender, region, and so on). For example, if ten people under 35 years of age accept a particular phone offer, the predicted likelihood that more people under 35 years of age will buy the same phone increases. The likelihood can also go down if a negative response is recorded, from this group. Over time, reliable correlations emerge.