Segmentation of retail customers based on cluster analysis in building successful CRM. (2016)

• Record Type: Journal Article
• Authors: Gupta, Gaurav; Aggarwal, Himanshu; Rani, Rinkle
• Is Part Of: International journal of business information systems. Volume 23:Number 2(2016)
• Page Start: 212
• Page End: 228
• Publication Date: 2016
• Subjects: customer segmentation -- data mining -- CRM -- customer relationship management -- cluster analysis -- retailing -- services -- marketing strategy -- retail customers -- long-term relationships; Information storage and retrieval systems -- Business -- Periodicals; Business -- Data processing -- Periodicals; Management information systems -- Periodicals; System design -- Periodicals; System analysis -- Periodicals; 651.8
• Languages: English
• ISSNs: 1746-0972

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.