Segmenting Customer Transactions Using a Pattern-Based Clustering Approach

  • Authors:
  • Yinghui Yang;Balaji Padmanabhan

  • Affiliations:
  • -;-

  • Venue:
  • ICDM '03 Proceedings of the Third IEEE International Conference on Data Mining
  • Year:
  • 2003

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Abstract

Grouping customer transactions into categories helpsunderstand customers better. The marketing literaturehas concentrated on identifying important segmentationvariables (e.g. customer loyalty) and on using clusteringand mixture models for segmentation. The data miningliterature has provided various clustering algorithms forsegmentation. In this paper we investigate using"pattern-based" clustering approaches to groupingcustomer transactions. We argue that there are clustersin transaction data based on natural behavioral patterns,and present a new technique, YACA, that groupstransactions such that itemsets generated from eachcluster, while similar to each other, are different fromones generated from others. We present experimentalresults from user-centric Web usage data thatdemonstrates that YACA generates a highly effectiveclustering of transactions.