Research on customer segmentation model by clustering

ABSTRACT

In the paper, we use credit card consumption data as our model-building samples and present a modeling framework for building segment-level predictive models that utilize pattern-based clustering approach and signature discovery techniques. We devise monetary matrix and fluctuate-rate matrix to study various modes. Through clustering on both matrixes, we uncover different customer characteristics. Utilizing these characteristics, we can build two-dimension Consumption-Based customer segmentation model.

REFERENCES

• 1: Del L. Hawkins, Roger J. Best, Kenneth A. Coney. Customers' Behaviors(seventh edition).
• 2: Management Science: A Comparative Research on the Methods of Customer Segmentation Based on Consumption Behavior. 2003.2, Vol.16.
• 3: (Canada) Jiawei Han, Micheline Kamber. The Concept and Techniques of Data Mining.

INDEX TERMS

Keywords:
clustering analysis, customer segmentation, segmentation model