Intelligent profitable customers segmentation system based on business intelligence tools

  • Authors:

  • Jang Hee Lee;Sang Chan Park

  • Affiliations:

  • School of Industrial Management, Korea University of Technology and Education, 307 Gajeon-ri, Byeong cheon-myun, Cheonan City, Choongnam Province 330-708, South Korea;Department of Industrial Engineering, Korea Advanced Institute of Science and Technology (KAIST), 373-1 Kusong-dong, Yusong-gu, Taejon 305-701, South Korea

  • Venue:
  • Expert Systems with Applications: An International Journal
  • Year:
  • 2005

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Abstract

For the success of CRM, it is important to target the most profitable customers of a company. Many CRM researches have been performed to calculate customer profitability and develop a comprehensive model of it. Most of them, however, had some limitations and accordingly the customer segmentation based on the customer profitability model is still underutilized. This paper aims at providing an easy, efficient and more practical alternative approach based on the customer satisfaction survey for the profitable customers segmentation. We present a multi-agent-based system, called the survey-based profitable customers segmentation system that executes the customer satisfaction survey and conducts the mining of customer satisfaction survey, socio-demographic and accounting database through the integrated uses of business intelligence tools such as DEA (Data Envelopment Analysis), Self-Organizing Map (SOM) neural network and C4.5 for the profitable customers segmentation. A case study on a Motor company's profitable customer segmentation is illustrated.