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Customer Portfolio Analysis using the SOM

Annika Holmbom, Tomas Eklund, Barbro Back, Customer Portfolio Analysis using the SOM. In: 19th Australasian Conference on Information Systems, ACIS 2008, 1–11, ACIS, 2008.

Abstract:

In order to compete for profitable customers, companies are looking to add value using Customer Relationship Management (CRM). One subset of CRM is customer segmentation, which is the process of dividing customers into groups based upon common features or needs. Segmentation methods can be used for customer portfolio analysis (CPA), the process of analyzing the profitability of customers.
This study was made for a case organization, who wanted to identify their profitable and unprofitable customers, in order to gain knowledge on how to develop their marketing strategies. Data about the customers were gathered from the case organization’s own database. The Self-Organizing Map (SOM) was used to divide the customers into segments, which were then analyzed in light of product sales information.

BibTeX entry:

@INPROCEEDINGS{inpHoEkBa08a,
  title = {Customer Portfolio Analysis using the SOM},
  booktitle = {19th Australasian Conference on Information Systems, ACIS 2008},
  author = {Holmbom, Annika and Eklund, Tomas and Back, Barbro},
  publisher = {ACIS},
  pages = {1–11},
  year = {2008},
  keywords = {Customer Relationship Management (CRM), Customer Portfolio Analysis (CPA), Data-driven market segmentation, Self-Organizing Map (SOM},
}

Belongs to TUCS Research Unit(s): Data Mining and Knowledge Management Laboratory

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