Customer data mining for lifestyle segmentation

Authors:
V. L. Miguéis;A. S. Camanho;João Falcão e Cunha
Affiliations:
Faculdade de Engenharia da Universidade do Porto, Portugal;Faculdade de Engenharia da Universidade do Porto, Portugal;Faculdade de Engenharia da Universidade do Porto, Portugal
Venue:
Expert Systems with Applications: An International Journal
Year:
2012

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Abstract

A good relationship between companies and customers is a crucial factor of competitiveness. Market segmentation is a key issue for companies to develop and maintain loyal relationships with customers as well as to promote the increase of company sales. This paper proposes a method for market segmentation in retailing based on customers' lifestyle, supported by information extracted from a large transactional database. A set of typical shopping baskets are mined from the database, using a variable clustering algorithm, and these are used to infer customers lifestyle. Customers are assigned to a lifestyle segment based on their purchases history. This study is done in collaboration with an European retailing company.