Title: Segmentation of retail customers based on cluster analysis in building successful CRM

Authors: Gaurav Gupta; Himanshu Aggarwal; Rinkle Rani

Addresses: Department of Computer Engineering, Punjabi University, Patiala (Pb), India ' Department of Computer Engineering, Punjabi University, Patiala (Pb), India ' Department of Computer Science and Engineering, Thapar University, Patiala (Pb), India

Abstract: Direct marketers uses data mining technique called segmentation based on cluster analysis to target a subset of their customers for improving their profits. As the world is growing more and more competitive, the customer need and experience is becoming more important to the businesses. CRM based on data mining is a comprehensive strategy and a process of acquiring, retaining, and partnering with selective customers to create superior value for the business by using customer knowledge. The objective of the paper is to segment the relevant customers through cluster analysis that may be helpful to the marketers in increasing their profit, sales and building long-term relationships with them. Segmentation of the customers can be achieved through cluster analysis. The findings in the paper may help the retailers to focus those segments of customers that increase their business, sales and profit and also aid in customer build ups and maintaining long-term relationships.

Keywords: customer segmentation; data mining; CRM; customer relationship management; cluster analysis; retailing; services; marketing strategy; retail customers; long-term relationships.

DOI: 10.1504/IJBIS.2016.078907

International Journal of Business Information Systems, 2016 Vol.23 No.2, pp.212 - 228

Received: 07 Apr 2015
Accepted: 02 May 2015
Published online: 05 Sep 2016 *

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