The key points in customer segmentation are determining target groups and satisfying their needs. Recency-Frequency-Monetary (RFM) analysis K-Means clustering algorithm the popular methods for when analyzing behavior. In our study, we adapt K-means to RFM model by extracting features that represent aspects of home appliances. Customers with similar RFM-oriented assigned same clusters, while cus...

Abstract Customer segmentation and key account management are important use cases for clustering algorithms. Here, a data set of Portuguese wholesaler food household supplies is used as an exemplary application. To increase the quality analysis, two-stage approach proposed. First, accounts filtered by density-based outlier detection. Second, Gaussian Mixture Model (GMM) applied to cluster small...

In e-commerce, where competition is tough and customers’ preferences can change quickly, it is crucial for companies to segment customers and target marketing actions effectively. The process of segmentation and targeting is effective if the customers grouped into the same segment show the same behavior and reaction to marketing campaigns. However, the link between segmentation and targeting is...

Data mining techniques have been used widely in the area of customer relationship management (CRM). In this study, we have applied data mining techniques to address a problem in business-to-business (B2B) setting. In a manufacturer-retailer-consumer chain, a manufacturer should improve its relationship with retailers to continue its business. Segmentation is a useful tool for identifying groups...

Today, competition forces consumer goods manufacturers and retailers to differentiate from their competitors by specializing and by offering goods/services that are tailored towards one or more subgroups or segments of the market. Retailers understand that shoppers are heterogeneous in nature, that they possess different wants and needs and that it is impossible to satisfy them all. However, th...

This research analyzes how to apply segmentation strategies in the nanostore retail market, focusing on a pilot company located in Bogota, Colombia. This study introduces two segmentation strategies: 1) a sketch segmentation strategy based on a basic ordering pattern analysis combined with an extended value matrix, sourced from a customer value matrix created by Marcus (1998); and 2) a precisio...

This paper proposes a novel approach to the estimation of Customer Lifetime Value (CLV). CLV measures give an indication of the profit-generating potential of customers, and provide a key business tool for the customer management process. The performances of existing approaches are unsatisfactory in multi-service financial environments because of the high degree of heterogeneity in customer beh...

data mining techniques have been used widely in the area of customer relationship management (crm). in this study, we have applied data mining techniques to address a problem in business-to-business (b2b) setting. in a manufacturer-retailer-consumer chain, a manufacturer should improve its relationship with retailers to continue its business. segmentation is a useful tool for identifying groups...

Partitioning of an image into several constituent components is called image segmentation. Numerous algorithms using different approaches have been proposed for image segmentation. Today many data clustering algorithms are being used for segmenting images. A major challenge in segmentation evaluation comes from the fundamental conflict between generality and objectivity. As there is a glut of i...