Thursday 28th of March 2024
 

Customer Segmentation Based on CLV Model and Neural Network


Matin Ayoubi

Today, for the customer oriented organization, identifying customers, creating a distinction between of them and ranking is one of the biggest challenges. In past times, separation of customers to the different group was taken based on customers demands. But today customer value as a measurable parameter, can be used for customers segmentation.so, by means of customer segmentation based on their value and measuring of their segmentation, we can explain marketing strategy and customer relationship management. Customers segmentation based on effective factors on customer lifetime value is the main object of this paper. For this object, we collected information about 56000 customers of the Taavon bank between 1390 and 1391. Mixed data was removed from data collection. At first by means of two-step approach, the optimum number of clustering was determined. Then, for second level of segmentation, Kohonen neural network was applied. Based on WRFM model, the value of each cluster was calculated. Finally golden customers, was recognized. Result of this paper can be used for marketing strategy and developing of new services for each segment of customers.

Keywords: customer value, customer segmentation, customer relationship management, customer life time value, neural network

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ABOUT THE AUTHOR

Matin Ayoubi



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