Using Data Analytics for Customers Segmentation: Experimental Study at a Financial Institution

Abstract

The customer segmentation divides customers into groups according to a range of different characteristics. It is necessary to understand the customers from different angles. The paper describes a five steps customer segmentation method consisting of gathering of quantitative information; creating specific microsegments; sorting microsegments; creating final customer segments; and linking the segments to marketing. The method is used for customer segmentation at a financial institution. The experimental studies conducted specifically focus on interactions between customer area-specific micro segmentations and final all-round customer segmentation. The final segmentation results are integrated in business intelligence applications for utilization in marketing operations.