Customer Segmentation is the process of grouping the customers based on their purchase habit. Data mining is useful in finding knowledge from huge amounts of data. The clustering techniques in data mining can be used for the customer segmentation process so that it clusters the customers in such a way that the customers in one group behave similar when compared to the customers in the other gro...

In order to compete for profitable customers, companies are looking to add value using Customer Relationship Management (CRM). One subset of CRM is customer segmentation, which is the process of dividing customers into groups based upon common features or needs. Segmentation methods can be used for customer portfolio analysis (CPA), the process of analyzing the profitability of customers. This ...

What will your customer do next? Customers behave differently; they are not all average. Can you simultaneously meet your customers’ needs and improve profitability? You can by communicating and providing better offers to customers based on their behavior and demographics. Segmentation gives you the ability to group customers in many ways: 1) Business rules; 2) Supervised clustering – decision ...

The paper presents a novel approach for customer segmentation which is the basic issue for an effective CRM ( Customer Relationship Management ). Firstly, the chi-square statistical analysis is applied to choose set of attributes and K-means algorithm is employed to quantize the value of each attribute. Then DBSCAN algorithm based on density is introduced to classify the customers into three gr...

The rapid growing of information technology (IT) motivates and makes competitive advantages in health care industry. Nowadays, many hospitals try to build a successful customer relationship management (CRM) to recognize target and potential patients, increase patient loyalty and satisfaction and finally maximize their profitability. Many hospitals have large data warehouses containing customer ...

Data mining is a powerful tool for firms to extract knowledge from their customers’ transaction data. One of the useful applications of data mining is segmentation. Segmentation is an effective tool for managers to make right marketing strategies for right customer segments. In this study we have segmented retailers of a hygienic manufacture. Nowadays all manufactures do understand that for st...

In this contribution, we discuss a facility location model to maximize firms’ patronage, while demand is determined by a multinomial logit model (MNL). We account for customer segmentation based on customer characteristics. Hence, we are able to reduce the bias to the objective, which is due to constant substitution patterns of the MNL. Numerical studies show that averaging customer characteris...

Numerous valuable clients can be lost to competitors in the telecommunication industry, leading profit loss. Thus, understanding reasons for client churn is vital companies. This study aimed develop a prediction model predict telecom through customer segmentation. Data were collected from three major Chinese companies, and Fisher discriminant equations logistic regression analysis used build mo...

Since the increased importance is placed on customer equity in today’s business environment, many firms are focusing on the notion of customer loyalty and profitability to increasing market share. Building successful customer relationship management (CRM), a firm starts from identifying customers’ true value and loyalty since customer value can provide basic information to deploy more targeted ...