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March peak catalog vs. no contact Number of households in mail group Number of households in control group Lift in shopping rates Lift in sales Lift in average basket size Return on investment 354,000 25,000 9.12% 15.16% 6.12% 1.28:1 April sandals postcard vs. no contact 86,000 20,000 20.93% 20.82% NA 1.91:1 Dual contact vs. catalog only 220,000 17,000 4.53% 3.27% NA 1.22:1

) /I process next bar 1 The Cf + code implements the rule templates and system trading strategy The function Rules implements the rule templates Arguments vl, ~2, ~3, and v4 (which correspond to the four numbers that comprise any one of the three genes) provide all the information required to instantiate a rule template Argument vl is used to select, via a switch statement, the required rule template from the 10 that are available; arguments ~2, ~3, and ~4, are used to till in the blanks (required parameters, desired directions of comparison, etc) to yield a fully defined rule The rule is then immediately evaluated for all bars, and the evaluations (1 for TRUE, 0 for FALSE) are placed in ans, a floating-point vector used to return the results to the caller.

The macro, BiasedPosScaZe(x,n), is used to map numbers ranging from 0 to 1,000 to a range of 0 to a, with more numbers mapping to smaller values than larger ones The macro is used to compute such things as lookbacks and movingaverage periods from ~2, ~3, or ~4, the values of which are ultimately derived from the genetic algorithm and scaled to range from 0 to 1,000 The macro is nonlinear (Biased) so that a finer-grained exploration occurs for smaller periods or lookbacks than for larger ones For example, suppose there is a moving average, with a period that ranges from 2 to 100 bars The intention is to search as much between periods 2, 3, and 4 as between 30, 50, and 90; ie, the scale should be spread for small numbers This is desired because, in terms of trading results, the change from a 2.

after receiving the rst communication. The lift in sales and traf c came primarily from households that had not previously shopped. Because the cost per piece for the postcard was low, there was a positive return on the investment. The second communication paid off because it was a cost-ef cient piece. Because of the success of this program, PreVision has recommended dual-contact communication strategies during other selling seasons as well, so that Stride Rite could maximize the effectiveness of its marketing dollars and communicate effectively with its customers.

bar moving average to a 5-bar moving average is likely to be much greater than the change from a 50-bar to a 60bar moving average The macro, LinearScnle(x,a,b), performs a linear mapping of the range 0 1,000 to the range a b The macro is usually used when calculating thresholds or deviations In the rule template code, all parameters are scaled inside Rules, rather than inside the GA as is the usual practice The GA has been instructed to produce numbers between 0 and 1,000, except for chromosome elements 1, 5, and 9, which are the first numbers in each gene, and which serve as rule template selectors The reason for local scaling is that templates for different kinds of rules require parameter and control values having different ranges to be properly instantiated.

If you are like most marketers, you have yet to do an organized email promotion to your customer base. Here is how to go about it. To begin with, you probably have a database of names and addresses, but you probably have email names for only a few (or none) of your customers. Your rst job is to get the email names into your customer records. As you know from this book, this process takes a long time and involves revising all your forms and telemarketing scripts to be sure you start capturing these email names, with permission to use them. To jump-start the process, you can get opt-in email names appended. You can get help with this. CSC Advanced Database Solutions, for example, has access to a database of more than 50 million households that have provided their email names to various vendors and given written permission for their use for commercial promotions. You can ask CSC or some similar vendor to run your house le against this list and append your customers email names to your database records. This will cost you about $250 per thousand, or about $0.25 each. (This may sound expensive to you if you have not yet read 5, The Value of a Name. After reading that chapter and doing your homework, you will know whether spending $0.25 per name is worth it for you.) There are dozens of other methods of gaining customer email addresses. You should be sure that customer service and telesales always ask for the emails and for permission to use them. There should be a space