Predicting Customer Behavior Research Articles

An efficient attention-based hybridized deep learning network with deep RBM features for customer behavior prediction in digital marketing

PurposeAn efficient customer behavior prediction model is designed using deep learning techniques. The necessary data used for the implementation are taken from standard datasets and presented to perform subsequent tasks. Here, deep restricted Boltzmann machines (RBM) features are retrieved from the input images. Further, the extracted deep RBM features are presented to the customer behavior prediction phase. Here, the attention-based hybrid deep learning (A-HDL) technique is designed based on the incorporation of a dilated deep temporal convolutional network (dilated-DTCN) and a weighted recurrent neural network (weighted RNN). Moreover, the weights in RNN are tuned using a modernized random parameter-based cheetah optimizer (MRPCO). Further, various experiments were performed on the implemented framework, and it secured an enhanced customer behavior prediction rate than the conventional models.Design/methodology/approachA novel hybrid deep network-based customer behavior prediction model was developed to predict the behavior of the customer so the companies yield more income by advertising their products based on the predicted results.FindingsWhen considering the first dataset, the designed customer behavior prediction mechanism produced 94% accuracy, which is higher than the conventional techniques such as long short-term memory (LSTM), DTCN, RNN and A-HDL with 88%, 87%, 89% and 93%.Originality/valueThe precision and the accuracy of the developed MRPCO-A-HDL-based customer behavior prediction model progressed than the conventional techniques and algorithms.

Exploring Customer Segmentation in E-Commerce using RFM Analysis with Clustering Techniques

The proliferation of big data and the growth of e-commerce have intensified the challenges associated with extracting actionable data for personalised recommendations and decision-making. With data-driven marketing strategies, understanding and predicting customer behaviour has become paramount for maintaining competitive advantage. This study leverages business analytics tools, focusing on Recency, Frequency, and Monetary (RFM) Analysis, alongside K-Means and Hierarchical (Agglomerative) Clustering algorithms, to segment customer transactional data. Data normalisation, a critical step for accurate clustering, was performed using log transformation and the Power Transformer technique with the Yeo-Johnson parameter, the latter proving more effective for handling both positively and negatively skewed data, enhancing data normalisation and suitability for analysis. This study reveals that RFM Analysis with Hierarchical Clustering outperforms K-Means Clustering, achieving a Silhouette Score of 0.47 and a Calinski–Harabasz Index of 3787.1, indicating a more accurate identification of customer segments. RFM Analysis alone generated eight clusters, while integrating RFM Analysis with both Hierarchical Clustering and K-Means generated three similar-sized clusters with interchanged labels. These metrics highlight the proficiency of Hierarchical Clustering in identifying unique customer segments and customising marketing strategies. The findings indicate that the RFM-Hierarchical Clustering approach enhances segmentation precision and facilitates more refined and effective marketing strategies.

Predictive analytics in customer behavior: Anticipating trends and preferences

In order to effectively manage their customers, businesses need to thoroughly analyze the costs and advantages associated with various alternative expenditures and investments and determine the most effective way to allocate resources to marketing and sales activities over time. Those in charge of making decisions will reap the benefits of decision support models that estimate the value of the customer portfolio and tie expenses to customers' purchasing behavior. In the current work, various machine learning algorithms such as Decision Tree (DT), Random Forest (RT), Logistic Regression (LR), Support Vector Machines (SVM), and gradient boosting are used to predict customer behavior. The evaluation criteria considered in the work include precision, recall, F1-Score, and ROC-AUC. The accuracy values obtained for DT, RT, LR, SVM, and gradient boosting are 0.787, 0.806, 0.826, 0.826, and 0.823, respectively. The results emphasize RT and LR's good performance, while the values of 0.620, 1, 0.766, and 0.878 for the precision, recall, F1-score, and ROC-AUC score outperform the rest. The novelty of this work lies in employing a comprehensive set of machine learning algorithms to predict customer behavior, with a particular emphasis on the superior performance of RF and LR models, as demonstrated by their high precision, recall, F1-score, and ROC-AUC values.

Customer Behavior Prediction using Machine Learning with Fuzzy Multiple Linear Regression

Customer Behavior Prediction using Machine Learning with Fuzzy Multiple Linear Regression

Utilizing machine learning algorithms to enhance predictive analytics in customer behavior studies

Machine learning (ML) algorithms have revolutionized the field of predictive analytics, particularly in understanding and anticipating customer behavior. This review explores how these advanced algorithms are utilized to enhance predictive analytics in customer behavior studies, driving more informed and strategic decision-making processes within businesses. Predictive analytics leverages historical data to predict future outcomes, and when combined with ML, it becomes significantly more powerful and accurate. ML algorithms can analyze vast amounts of data, identifying patterns and trends that would be impossible for humans to discern. These algorithms, including decision trees, neural networks, and support vector machines, can handle complex and nonlinear relationships within data, making them exceptionally well-suited for customer behavior studies. The application of ML in predictive analytics begins with data collection from various sources, such as transaction records, social media interactions, and customer feedback. This data is then preprocessed to ensure quality and relevance before being fed into ML models. Through techniques like clustering, classification, and regression, ML algorithms can segment customers, predict purchasing behaviors, and identify potential churners. One significant advantage of using ML for predictive analytics in customer behavior is the ability to deliver personalized experiences. By predicting individual customer preferences and needs, businesses can tailor their marketing efforts, product recommendations, and customer service interactions, thereby enhancing customer satisfaction and loyalty. For instance, e-commerce platforms use ML-driven predictive analytics to suggest products that a customer is likely to purchase based on their browsing and buying history. Moreover, ML algorithms continuously learn and improve from new data, allowing for real-time updates and more accurate predictions over time. This dynamic nature is crucial in today’s fast-paced market environments where customer preferences and behaviors can change rapidly. In conclusion, utilizing ML algorithms in predictive analytics significantly enhances the ability to understand and predict customer behavior. This integration not only helps businesses optimize their strategies and operations but also fosters deeper customer relationships through personalized and timely engagements. As ML technology continues to evolve, its impact on predictive analytics and customer behavior studies is expected to grow, offering even more sophisticated and actionable insights.

AI integration in business development: Ethical considerations and practical solutions

The winds of change are sweeping through the business landscape, propelled by the transformative power of artificial intelligence (AI). This integration isn't merely a technological upgrade; it's a paradigm shift, unlocking a treasure trove of opportunities for companies to achieve unprecedented growth, efficiency, and innovation. Imagine AI-powered systems that analyze vast amounts of data, identify new market opportunities, predict customer behavior with uncanny accuracy, and even automating tedious tasks associated with lead generation and qualification. This is the future that AI promises, a future brimming with potential. However, the path to this future is not without its challenges. The immense power of AI comes with a critical responsibility: ensuring its ethical and responsible use. This review paper delves into the ethical considerations that businesses must navigate as they integrate AI into their business development strategies, exploring potential pitfalls like bias in algorithms, data privacy concerns, and job displacement. But fear not, for this paper doesn't just identify challenges; it also proposes practical solutions to navigate these complexities effectively. By acknowledging the potential for bias in AI algorithms and taking proactive steps to mitigate it, businesses can ensure fairness and inclusivity in their AI-driven decision-making. Imagine a team of data scientists meticulously scrutinizing training data, removing skewed information that could lead to discriminatory outcomes in lead generation or customer targeting. This commitment to responsible data practices fosters trust and ensures AI is used for good. Data privacy is another paramount concern in the age of AI. As AI systems collect and analyze vast amounts of customer data, businesses have a responsibility to safeguard this information. Imagine robust data security measures in place, protecting sensitive customer data with encryption protocols and access controls. Furthermore, fostering transparency about data collection practices and obtaining explicit consent from customers builds trust and demonstrates a commitment to responsible data stewardship. The specter of job displacement also looms large in the discussion of AI. While automation powered by AI might replace some repetitive tasks, it's important to remember that it also creates new opportunities. Imagine a world where AI handles lead scoring and qualification, freeing up human business developers to focus on high-value activities like strategic relationship building and closing deals. By investing in retraining programs and fostering a culture of continuous learning, businesses can empower their workforce to adapt and thrive in this evolving landscape.

Enhancing customer behavior prediction in e-commerce: A comparative analysis of machine learning and deep learning models

Enhancing customer behavior prediction in e-commerce: A comparative analysis of machine learning and deep learning models

Shopping marketplace analysis based on customer insights using social media analytics

Using the recent advances in data analytics, Companies can leverage sentiment analysis to identify trends and areas for improvement of their market strategy and operation planning. This analysis allows them to understand the sentiments expressed by customers and accurately predict customer behavior. Social media platforms have fundamentally altered the field of digital marketing. The findings of this research try to provide:•Potential implications for businesses aiming to optimize their product offerings and enhance customer satisfaction within specific cultural contexts.•A case study has been designed for understanding customers' perceptions and satisfaction levels toward various shops, including local ethnic stores and big chain stores.The paper has conducted a literature review around main pillars like application of data analytics on social media, and sales strategies for establishing a marketplace using data analytics. Exploring the utilization of social media and customer feedback, the paper has proposed a conceptual model for creating insights for extraction of shopping experiences and factors used for customer purchasing decision making.

Predictive Analytics Techniques in Consumer Behaviour: A Literature Review

Under fierce market competition, there is a need for enterprises to analyze and predict the behavior of consumers in order to improve the market competitiveness. We find that in the previous literature, there is little specific systematic summary and research on the methods to predict customer behavior. Thus, in this paper, we discuss relevant concepts of customer behavior and predict consumer behavior by studying the operation mechanism of Big Data Analysis (BDA), Decision Tree (DT) and Consumer Relationship Management (CRM). We also study the application of each technology to enterprises in different fields and its impact on consumer behavior. BDA can efficiently organize a large amount of data into several variables that is related to the prediction and provide a reference prediction for the business. DT can effectively improve the accuracy of market segmentation, classify customers into sub-customer groups with distinct consumption characteristics, and help enterprises make targeted decisions. CRM can collect customer information through data sampling to build a comprehensive view of customers, and create customer analysis and prediction models according to the different needs of the enterprise. Studying the past consumer behavior can help enterprises to better develop products and make personalized decision plans for specific customer groups.

Analyzing the Dynamics of Customer Behavior: A New Perspective on Personalized Marketing through Counterfactual Analysis

The existing body of research on dynamic customer segmentation has primarily focused on segment-level customer purchasing behavior (CPB) analysis to tailor marketing strategies for distinct customer groups. However, these approaches often lack the granularity required for personalized marketing at the individual level. Moreover, the analysis of customer transitions between different groups has largely been overlooked. This study addresses these gaps by developing an efficient framework that enables businesses to forecast customer behavior, assess the impact of various strategies on each customer separately, and analyze customer transition between segments. This can facilitate providing personalized marketing strategies, fostering a gradual transition toward a desired customer status, and enhancing the overall marketing precision. In this study, we employ time series feature vectors encompassing recency, frequency, monetary value, and lifespan, applying the K-means algorithm with a range of distance metrics for customer segmentation along with classification algorithms to predict customer behavior. Leveraging counterfactual analysis, we establish a solution for analyzing customer transitions between groups and evaluating personalized marketing strategies. Our findings underscore the superior performance of the Euclidean distance metric, closely followed by the Manhattan distance, in distinguishing the patterns in time series customer behavior, with logistic regression excelling in predicting customer status. This study enables decision-makers to forecast the impact of diverse marketing strategies on customer behavior which facilitates customer retention and engagement through well-informed decisions.

Big Data Technology and Financial Performance of Listed Firms in Palestine: Mediating Role of Accounting Information Systems

The purpose of this paper is to examine the mediating effect of the rate of quality of accounting information systems on the relationship between big data technology and firms’ financial performance in firms listed on the Palestine Stock Exchange. The researchers conducted an account of the previous studies in this field. The researcher used the deductive approach in studying and analyzing previous studies related to big data by relying on books, periodicals, theses, and accounting standards related to the subject of the research. The researcher applied an inductive approach when conducting the field study and testing the statistical hypotheses related to the study of the relationship between the use of big data technology and firms’ financial performance. The findings show a correlation coefficient of (0.54) and a coefficient of determination of (48%), indicating that big data analytics positively affects the rate of return on assets, and that there is a statistically significant relationship between the advancement of accounting information systems and the enhancement of financial performance in big data technology, as measured by the rate of return on equity and the rate of return on assets, which have correlation rates of (0.53) and (42%), respectively. This relationship is reflected in the data on the existence of a statistically significant relationship between the use of big data technology and the enhancement of financial performance with big data technology. The intention of big data, as well as the absence of fundamental differences between the sample individuals, states that the use of big data technology leads to improved performance through the development of various accounting practices and good inventory management by predicting customer behaviour, thus increasing the competitiveness of competition and improving the reputation of the establishment on social media. This is reflected in the company’s sales and its survival in the market, as well as the development of analytical models and advanced methods of analysis that limit fraud and help control it, which is one of the establishment’s goals at present. This paper contributes to the literature by showing that the use of big data leads to a change in methods of preparing the final accounts, especially the financial position, and displaying them at fair value, which increases investor confidence. The study offers insights into the necessity of holding training courses for accountants concerning technology related to digital transformation and big data analysis for use in developing accounting practices.

Revolutionizing Banking Decision-Making: A Deep Learning Approach to Predicting Customer Behavior

This article explores a machine learning approach focused on predicting bank customer behavior, emphasizing deep learning methods. Various architectures, including CNNs like VGG16, ResNet50, and InceptionV3, are compared with traditional algorithms such as Random Forest and SVM. Results show deep learning models, particularly ResNet50, outperform traditional ones, with an accuracy of 86.66%. A structured methodology ensures ethical data use. Investing in infrastructure and expertise is crucial for successful deep learning integration, offering a competitive edge in banking decision-making.

Tourists’ Willingness to Adopt AI in Hospitality—Assumption of Sustainability in Developing Countries

This study explores the impact of artificial intelligence (AI) on customer perceptions and behavior in restaurants, airline companies, and hotel sectors within the hospitality industry of Iran. The primary objective is to analyze how AI affects customer trust, brand engagement, electronic word-of-mouth (eWOM), and tourists’ readiness to use AI technologies. Using a comparative analysis approach and surveys, this research tests hypotheses about the effects of artificial intelligence on various dimensions of customer interaction. The findings highlight significant relationships between the quality of artificial intelligence and customer engagement metrics, such as trust and brand loyalty, which are crucial for understanding and predicting customer behavior in response to technological advancements. This study lays the groundwork for theoretical assumptions about sustainability in these sectors in developing countries, providing a basis for future empirical research that could validate these assumptions and explore broader implications of AI integration in enhancing sustainable practices within the hospitality industry.

Retraction Note: A Computational Model for Predicting Customer Behaviors Using Transformer Adapted with Tabular Features

Retraction Note: A Computational Model for Predicting Customer Behaviors Using Transformer Adapted with Tabular Features

Optimal allocation of customer energy storage based on power big data and improved LSTM load forecasting

This research explores the potential of energy storage investment with a focus on regional power users. An incentive-based demand response framework is constructed, emphasizing the aggregation of demand-side resources for active participation in the power market. Utilizing a data-driven approach, the improved Long Short Term Memory (LSTM) model is employed to predict customer behavior in response to incentives. The primary objective is to maximize the life cycle benefit while minimizing the payback period for users investing in energy storage. By harnessing big data analytics, suitable users for energy storage investment are identified and optimal capacity allocation is determined. Given the current energy storage parameters and dynamics of electricity pricing, boundary values for profitable user energy storage capacities are derived. This methodology filters users with capacities exceeding these thresholds, marking them as potential candidates for energy storage deployment. Furthermore, a measurement model for iron phosphate batteries is introduced. Analysis of adjustable resource capacity, duration, and benefits for potential users provides insights into optimal energy storage investment strategies. Integrating configured energy storage batteries with time-of-use tariffs substantially reduces energy storage costs, leading to enhanced economic efficiency.

A Consumer Behavior Analysis Framework toward Improving Market Performance Indicators: Saudi’s Retail Sector as a Case Study

Studying customer behavior and anticipating future trends is a challenging task, as customer behavior is complex and constantly evolving. To effectively anticipate future trends, businesses need to analyze large amounts of data, use sophisticated analytical techniques, and stay up-to-date with the latest research and industry trends. In this paper, we propose a comprehensive framework to identify trends in consumer behavior using multiple layers of processing, including clustering, classification, and association rule learning. The aim is to help a major retailer in Saudi Arabia better understand customer behavior by utilizing the power of big data analysis. The proposed framework is presented as being generalized to gain insight into the generated big data and enable data-driven decision-making in other relevant domains. We developed this framework in collaboration with a large supermarket chain in Saudi Arabia, which provided us with over 1,000,000 sales transaction records belonging to around 30,000 of their loyal customers. In this study, we apply our proposed framework to those data as a case study and present our initial results of consumer clustering and association rules for each cluster. Moreover, we analyze our findings to figure out how we can further utilize intelligence to predict customer behavior in clustered groups.

Research on Customer Behavior Prediction Model for Cultural Industry Combined with Deep Learning

Abstract In recent years, as deep learning has demonstrated powerful characterization capabilities in the fields of speech, image, and text, researchers have begun to apply it to the field of prediction, i.e., predicting customer behaviors through current interaction records and features. This paper proposes a deep wandering-based customer behavior prediction model that combines deep learning techniques to forecast customer behavioral trends in the cultural industry. The model randomly wanders from the social network graph structure of the customer’s purchase of goods to generate a new behavioral sequence. We regard the user’s behavioral sequence as a word, and we pre-train all the behavioral sequence documents using the Word2vec algorithm model. The experimental comparison revealed that the model, which incorporates the depth-wandering technique, outperforms other models on the test set in terms of predictiveness. The website uses the deep wandering user behavior prediction model to forecast sales and adapts its sales strategy based on the customer’s behavior. 31% of customers were content with the books they bought from the website, while 52% were extremely content. By comparing the book sales before and after applying the model, it was found that the book sales increased significantly after adjusting the sales strategy, indicating that the customer behavior prediction model constructed in this paper can be used practically.

Prediction of Customer Behavior Changing via a Hybrid Approach

Prediction of Customer Behavior Changing via a Hybrid Approach

Unlocking high-value football fans: unsupervised machine learning for customer segmentation and lifetime value.

In the modern competitive landscape of football, clubs are increasingly leveraging data-driven decision-making to strengthen their commercial positions, particularly against rival clubs. The strategic allocation of resources to attract and retain profitable fans who exhibit long-term loyalty is crucial for advancing a club's marketing efforts. While the Recency, Frequency, and Monetary (RFM) customer segmentation technique has seen widespread application in various industries for predicting customer behavior, its adoption within the football industry remains underexplored. This study aims to address this gap by introducing an adjusted RFM approach, enhanced with the Analytic Hierarchy Process (AHP) and unsupervised machine learning, to effectively segment football fans based on Customer Lifetime Value (CLV). This research employs a novel weighted RFM method where the significance of each RFM component is quantified using the AHP method. The study utilizes a dataset comprising 500,591 anonymized merchandising transactions from Amsterdamsche Football Club Ajax (AFC Ajax). The derived weights for the RFM variables are 0.409 for Monetary, 0.343 for Frequency, and 0.248 for Recency. These weights are then integrated into a clustering framework using unsupervised machine learning algorithms to segment fans based on their weighted RFM values. The simple weighted sum approach is subsequently applied to estimate the CLV ranking for each fan, enabling the identification of distinct fan segments. The analysis reveals eight distinct fan clusters, each characterized by unique behaviors and value contributions: The Golden Fans (clusters 1 and 2) exhibit the most favourable scores across the recency, frequency, and monetary metrics, making them relatively the most valuable. They are critical to the club's profitability and should be rewarded through loyalty programs and exclusive services. The Promising segment (cluster 3) shows potential to ascend to Golden Fan status with increased spending. Targeted marketing campaigns and incentives can stimulate this transition. The Needs Attention segment (cluster 4) are formerly loyal fans whose engagement has diminished. Re-engagement strategies are vital to prevent further churn. The New Fans segment (clusters 5 and 6) are fans who have recently transacted and show potential for growth with proper engagement and personalized offerings. Lastly, the Churned/Low Value segment (clusters 7 and 8) are fans who relatively contribute the least and may require price incentives to potentially re-engage, though they hold relatively lower priority compared to other segments. The findings validate the proposed method's utility through its application to AFC Ajax's Customer Relationship Management (CRM) data and provides a robust framework for fan segmentation in the football industry. The approach offers actionable insights that can significantly enhance marketing strategies by identifying and prioritizing high-value segments based on the club's preferences and requirements. By maintaining the loyalty of Golden Fans and nurturing the Promising segment, football clubs can achieve substantial gains in profitability and fan engagement. Additionally, the study underscores the necessity of re-engaging formerly loyal fans and fostering new fans' growth to enable long-term commercial success. This methodology not only aims to bridge a research gap, but also equips marketing practitioners with data-driven tools for effective and efficient customer segmentation in the football industry.

B2B Customer Engagement Customer Behaviour Forecast Application

The paper presents the "Casper Customer Behavior Forecast Application" a creative project focused on the creation of an advanced decision support software system. The purpose of this system is to closely observe, fully analyze, and precisely predict the behaviors of Casper Business-to-Business (B2B) clients. Our research study implements an innovative methodology by focusing on the enhancement of client interactions through the utilization of RESTful services. Our objective is to reimagine the future of customer relationship management by analyzing and forecasting client behavior in the business-to-business (B2B) setting. The project involves a comprehensive methodology that incorporates extensive study, complex software design, and careful data analysis. In more detail, it involves extensive monitoring of consecutive RESTful interactions carried out by business-to-business consumers across a period of time. By leveraging the capabilities of modern machine learning and deep learning algorithms, our objective is to develop prediction models that establish novel benchmarks within the industry. The methodology employed in this study includes the development of labeled behavioral datasets and the utilization of a supervised machine learning framework. The evaluation of model performance will be performed systematically using a range of metrics, such as F-Score and Accuracy, in order to establish the model's robustness and reliability in making accurate predictions. The expected outcomes of this project have the potential to bring about significant changes. Primarily, the integration of machine learning and deep learning algorithms will provide our company with an important amount of knowledge. Our organization will obtain an innovative software solution that possesses the capability to precisely forecast the future actions of B2B customers. This results in enhanced inventory management and a significant reduction in client waiting periods, resulting in increased levels of customer satisfaction. Additionally, this study has the potential to make significant additions to the global academic body of knowledge in the domains of machine learning and deep learning. In simple terms, the project titled "Casper Customer Behavior Forecast Application" embodies an innovative and academic effort aimed at enhancing customer engagement and predicting customer behavior within the context of business-to-business (B2B) interactions. This research project carries considerable importance, both in its potential to reinvent the field of customer relationship management and its ability to contribute to the global academic conversation on machine learning and deep learning.