Business Understanding:

1. Introduction

• In the context of selling its term deposit product, ABC Bank aims to develop a model that can predict whether a customer is likely to purchase the product based on their past interactions with the bank or other financial institutions.
• By utilizing a machine learning model, ABC Bank intends to streamline its marketing efforts and optimize resource allocation by targeting customers who have a higher probability of buying the product.

2. Objectives

The primary objectives of developing an ML model for customer targeting in term deposit sales are as follows:

• Increase marketing efficiency: By accurately identifying potential customers who are more likely to buy the term deposit product, ABC Bank can focus its marketing efforts and resources on these individuals, thereby optimizing campaign effectiveness.
• Cost reduction: By targeting the most promising leads, ABC Bank can reduce costs associated with marketing campaigns, such as telemarketing, SMS, and email marketing, as the efforts will be concentrated on customers with higher chances of conversion.
• Improved customer satisfaction: By tailoring marketing communications to specific customer segments, ABC Bank can provide a more personalized and relevant experience to its customers, leading to higher customer satisfaction.