International Journal of Computer Applications
Foundation of Computer Science (FCS), NY, USA
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Volume 45 - Issue 17 |
Published: May 2012 |
Authors: Varun Kumar. M, Vishnu Chaitanya. M, Madhavan. M |
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Varun Kumar. M, Vishnu Chaitanya. M, Madhavan. M . Segmenting the Banking Market Strategy by Clustering. International Journal of Computer Applications. 45, 17 (May 2012), 10-15. DOI=10.5120/7000-9473
@article{ 10.5120/7000-9473, author = { Varun Kumar. M,Vishnu Chaitanya. M,Madhavan. M }, title = { Segmenting the Banking Market Strategy by Clustering }, journal = { International Journal of Computer Applications }, year = { 2012 }, volume = { 45 }, number = { 17 }, pages = { 10-15 }, doi = { 10.5120/7000-9473 }, publisher = { Foundation of Computer Science (FCS), NY, USA } }
%0 Journal Article %D 2012 %A Varun Kumar. M %A Vishnu Chaitanya. M %A Madhavan. M %T Segmenting the Banking Market Strategy by Clustering%T %J International Journal of Computer Applications %V 45 %N 17 %P 10-15 %R 10.5120/7000-9473 %I Foundation of Computer Science (FCS), NY, USA
Customer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing such as age, gender, interests, spending habits, and so on. One of the easiest definitions is "a group of customers with shared needs". From this definition, it's clear what we need to identify customers with shared needs. The customer segmentation consists of two phases. First phase includes K-Means clustering, where the customers are clustered according to their RFM (Recency Frequency Monetary). In the Second phase, with demographic data, each cluster is again partitioned into new clusters. Finally LTV (Life Time Value of the customers) are used to generate customer's profile.