Customer portfolio analysis using the SOM
by Annika H. Holmbom; Tomas Eklund; Barbro Back
International Journal of Business Information Systems (IJBIS), Vol. 8, No. 4, 2011

Abstract: 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 analysing the profitability of customers. The purpose of this paper is to illustrate how the self-organising map (SOM) can be used for CPA. We segment, identify and analyse a case organisation's profitable and unprofitable customers in order to gain knowledge for the organisation to develop its marketing strategies. The results are validated through cross and face validation. The SOM is able to segment the data in an innovative and reliable way and to provide new insights for decision makers.

Online publication date: Tue, 30-Sep-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Information Systems (IJBIS):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com