A SOM-Based Customer Stratification Model

Author:

Zong Yi1ORCID,Pan Enze2

Affiliation:

1. Postgraduate Department, Tianjin University of Commerce, Tianjin 300134, China

2. College of Management, Tianjin University of Commerce, Tianjin 300134, China

Abstract

This paper used the SOM in combination of the optimized RFM for customer stratification, to develop targeted marketing strategies for enterprises. In this paper, customers were grouped into four categories, including core customers, opportunistic customers, service drain customers, and marginal customers, using the customer consumption data of a retail enterprise by SOM, a clustering algorithm based on neural networks, in combination with the optimized RFM from the perspective of machine learning. The value of customers in different categories was determined based on their typical features for a visualized analysis, to develop targeted marketing strategies for enterprises.

Funder

Philosophy and Social Science Project

Publisher

Hindawi Limited

Subject

Electrical and Electronic Engineering,Computer Networks and Communications,Information Systems

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