Abstract
With the coming of data era, even small business has ability to collect and store abundant data, which means doing customer segmentation based on data, instead of experience, is possible. This paper chooses a developing business in Chin—bath center, to make customer segmentation with data. In this research, neural net is used to deal with the distance to fit more with the true psychological distance and create the distance score to get more information from the variables about coming of the customers. Possible formula of distance score is also given as a reference. The distance score turns out to be a better measure of the psychological distance and the neural net has a better graph of the distance data than other methods. This paper gives a possible method for customer segmentation in a completely new business area.
Highlights
With the development of machine learning, more and more businesses use data science to help make profit, and the new subject—business analysis, arises
A plenty of papers focusing on business analysis have been done in the business areas where researchers can get a huge amount of data, such as bank and market
2.3 Building Distance Score through Neural Net Absolutely, bath center belongs to the modern service industry
Summary
With the development of machine learning, more and more businesses use data science to help make profit, and the new subject—business analysis, arises. Though many small businesses like milk powder [1] and veterinary medicine [2] have the awareness of marketing segmentation, they do not use data or use the general method to do it, which may not fit with the situation of specific business area. To help the business make more profit and give better service, specific customer segmentation based on increasing data is necessary. Because of the different standard of each person, using neural net gives a better way to make a measure. By using this method, this paper can turn unused data to sizable profit and improve the customer satisfaction index
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