Customer Segmentation Marketing Strategy Based on Big Data Analysis and Clustering Algorithm

Customer Segmentation Marketing Strategy Based on Big Data Analysis and Clustering Algorithm

Xiaotong Li, Young Sook Lee
Copyright: © 2024 |Pages: 16
DOI: 10.4018/JCIT.336916
Article PDF Download
Open access articles are freely available for download

Abstract

Traditional customer segmentation methods cannot obtain more effective information from massive customer data, which affects the formulation of marketing strategies. Based on this, this study constructs a customer segmentation marketing strategy model that integrates support vector machines and clustering algorithms. This model first utilizes support vector machines to segment existing customer data, and then integrates support vector machines and clustering algorithms to construct a customer segmentation model. Finally, simulation experiments are conducted using the dataset. The results show that the model algorithm obtains the optimal solution when the quantity of iterations is 50. Meanwhile, the average error rate of the model algorithm in the customer segmentation process is 6.82%, the average recall rate is 91.28%, and the average profit predicted by the impact strategy developed by the segmentation model is 29.88%, which is 2.53% different from the true value.
Article Preview
Top

Customer-segmentation marketing strategies play an important role in improving market competitiveness, reducing marketing costs, enhancing marketing effectiveness, and strengthening customer-relationship management. By segmenting customer groups, enterprises can better meet customer needs, achieve sustained growth, and achieve sustainable competitive advantages. To better leverage customer-segmentation marketing strategies, many scholars have analyzed and studied relevant sales data. Scholars such as Sokol and Holý (2021) have utilized data clustering analysis techniques to analyze customer behavior and value in the retail industry. This study obtained information on shopping proximity, frequency, and purchasing power by segmenting customers and applied data-clustering analysis to a chain pharmacy. The results indicate that this method can bring more customer needs to the attention of merchants.

Nikaein and Abedin (2021) constructed a data-mining method based on a radio frequency machine learning model for enhancing the efficiency of marketing and reducing costs during the marketing process and applied it to the pharmaceutical industry. The results indicate that this model can help sales managers more effectively plan for each customer, improve visit efficiency, and lower costs.

To reduce customer churn in potential customer orders, Fitriani and Febrianto (2021) compared data-mining methods such as naive Bayes, random forests, and SVM. They used these to obtain data-feature information about potential customers to eliminate the problem of category imbalance in the marketing process of banks. The results indicate that random forests have high mining ability, with a maximum accuracy of 92.61%.

Complete Article List

Search this Journal:
Reset
Volume 26: 1 Issue (2024)
Volume 25: 1 Issue (2023)
Volume 24: 5 Issues (2022)
Volume 23: 4 Issues (2021)
Volume 22: 4 Issues (2020)
Volume 21: 4 Issues (2019)
Volume 20: 4 Issues (2018)
Volume 19: 4 Issues (2017)
Volume 18: 4 Issues (2016)
Volume 17: 4 Issues (2015)
Volume 16: 4 Issues (2014)
Volume 15: 4 Issues (2013)
Volume 14: 4 Issues (2012)
Volume 13: 4 Issues (2011)
Volume 12: 4 Issues (2010)
Volume 11: 4 Issues (2009)
Volume 10: 4 Issues (2008)
Volume 9: 4 Issues (2007)
Volume 8: 4 Issues (2006)
Volume 7: 4 Issues (2005)
Volume 6: 1 Issue (2004)
Volume 5: 1 Issue (2003)
Volume 4: 1 Issue (2002)
Volume 3: 1 Issue (2001)
Volume 2: 1 Issue (2000)
Volume 1: 1 Issue (1999)
View Complete Journal Contents Listing