Customer Segmentation Using Clustering Techniques

Abstract

In recent years,every e-commerce enterprise focuses on Customer segmentation.It means that the process of dividing customers into groups with similar characteristics. This process makes it easy to target specific customers with specific products, services, and mar- keting strategies, so can better understand their needs, and purchas- ing patterns. It helps them develop their professional and business skills. A lot of commercial businesses have realised the value of CRM and the use of technical know how to gain competitive ad- vantage. This paper examines alternative models for customer seg- mentation utilising clustering techniques as well as the significance of customer segmentation as a fundamental CRM function. In this paper different clustering techniques,has been presented in order to segment the customers. The possibility of combining the techniques mentioned to create a hybrid solution that can outperform the indi- vidual models is then discussed.