A case study of applying spectral clustering technique in the value analysis of an outfitter's customer database

En Chi Chang, Shian Chang Huang, Hsin Hung Wu, Chiao Fang Lo

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This case study applies the spectral clustering technique in the value analysis of the customer database of an outfitter in Taipei, Taiwan. By considering gender, birth date, zip code, shopping frequency, and the total spending, the spectral clustering analysis found six clusters among 551 member customers from the company's database. In addition to the clustering analysis, different promotion strategies based on two recency-frequency-monetary based loyalty strategies matrices for the members of different clusters are provided. The analysis shows that Clusters 5 and 3 are the two most important groups and one group of customers may have to be abandoned to save the company's marketing resources. © 2007 IEEE.
Original languageEnglish
Title of host publicationIEEM 2007: 2007 IEEE International Conference on Industrial Engineering and Engineering Management|IEEM IEEE Int. Conf. Ind. Eng. Eng. Manage.
Place of PublicationSingapore
Pages1743-1746
Number of pages3
DOIs
Publication statusPublished - 2007
Event2007 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2007 -
Duration: 1 Jul 2007 → …

Conference

Conference2007 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2007
Period1/07/07 → …

Keywords

  • Customer value analysis
  • Promotion strategy
  • Spectral clustering technique

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