Assigning discounts in a marketing campaign by using reinforcement learning and neural networks
In this work, RL is used to find an optimal policy for a marketing campaign. Data show a complex characterization of state and action spaces. Two approaches are proposed to circumvent this problem. The first approach is based on the self-organizing map (SOM), which is used to aggregate states. The second approach uses a multilayer perceptron (MLP) to carry out a regression of the action-value function. The results indicate that both approaches can improve a targeted marketing campaign. Moreover, the SOM approach allows an intuitive interpretation of the results, and the MLP approach yields robust results with generalization capabilities.
marketing reinforcement learning neural networks function approximation state aggregation