Consider a cash register receipt coupon offer. For many grocers, back-of-the-till coupon generation is either one size fits all or is based upon a simple Boolean "if the customer purchases A, then offer B" model. For example, customers who buy pasta will receive a coupon for pasta sauce. Customers who buy Brand A pasta sauce will receive a discount coupon for another of Brand A's pasta sauces (or a competing Brand B sauce).
What is still quite rare is for the retailer or sponsoring manufacturer to use past behavior to determine the proper treatment for that customer. If the customer has no history of ever using a back-of-the till coupon or buying pasta sauce, then it is extremely unlikely that the person will do so now.
What if, instead, we actively tracked the pasta buying habits of that customer? Say the customer has a demonstrated behavior of buying five to six pounds of pasta every two weeks and has not purchased pasta in the last 18 days. To bring the...
