🔗 Total Incremental Benefit (TIB)

Total Incremental Benefit (TIB)#

The total added benefit from treating a targeted population versus not.

Important

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What it is#

Total incremental benefit (TIB) is the overall net gain from applying a treatment compared to not applying it at all — the absolute improvement an uplift strategy delivers across the whole population. In uplift modelling it is the final value of the cumulative incremental gain curve, at 100% of the targeted population.

The formula#

\[\text{TIB} = \sum_{i=1}^{N} \left( y_i^{\text{treat}} - y_i^{\text{control}} \right),\]

summing the treated-minus-untreated outcome over the whole population $N$. Expressed in money, it becomes incremental conversions × profit per conversion.

A worked example#

A promotion runs on 10,000 customers: the treatment group (5,000) makes 700 purchases (14%), the control group (5,000) makes 500 (10%). That is 200 incremental conversions; at $50 profit each, the total incremental benefit is ``$10,000`` — 200 extra purchases the campaign genuinely caused.

Why it matters#

TIB puts a single number on a campaign’s business value. It feeds ROI directly —

\[\text{ROI} = \frac{\text{TIB} - \text{Campaign Cost}}{\text{Campaign Cost}},\]

and serves as a benchmark for comparing uplift models and a basis for budget allocation, since it reflects the true added impact rather than gross outcomes.

Theme: Causal Inference & Uplift · All terminology

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Mind map — connected ideas

Cumulative Incremental Gain (CIG) · Incremental Gain · Qini Curve · ROI (Return on Investment) · Incremental Revenue · Treatment Cost

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More in Causal Inference & Uplift

AUUC (Area Under the Uplift Curve) · Causal Effect · Causal Impact · Causal Inference · Causal ML (Causal Machine Learning) · Causal Trees · Cumulative Incremental Gain (CIG) · Cumulative Uplift · Incremental Conversions · Incremental Gain · Incremental Recovery Rate (IRR) · Incremental Revenue · Incremental Sales · Qini Coefficient