You have requested a machine translation of selected content from our databases. This functionality is provided solely for your convenience and is in no way intended to replace human translation. Neither SPIE nor the owners and publishers of the content make, and they explicitly disclaim, any express or implied representations or warranties of any kind, including, without limitation, representations and warranties as to the functionality of the translation feature or the accuracy or completeness of the translations.
Translations are not retained in our system. Your use of this feature and the translations is subject to all use restrictions contained in the Terms and Conditions of Use of the SPIE website.
6 April 2000Value-based customer grouping from large retail data sets
In this paper, we propose OPOSSUM, a novel similarity-based clustering algorithm using constrained, weighted graph- partitioning. Instead of binary presence or absence of products in a market-basket, we use an extended 'revenue per product' measure to better account for management objectives. Typically the number of clusters desired in a database marketing application is only in the teens or less. OPOSSUM proceeds top-down, which is more efficient and takes a small number of steps to attain the desired number of clusters as compared to bottom-up agglomerative clustering approaches. OPOSSUM delivers clusters that are balanced in terms of either customers (samples) or revenue (value). To facilitate data exploration and validation of results we introduce CLUSION, a visualization toolkit for high-dimensional clustering problems. To enable closed loop deployment of the algorithm, OPOSSUM has no user-specified parameters. Thresholding heuristics are avoided and the optimal number of clusters is automatically determined by a search for maximum performance. Results are presented on a real retail industry data-set of several thousand customers and products, to demonstrate the power of the proposed technique.
The alert did not successfully save. Please try again later.
Alexander Strehl, Joydeep Ghosh, "Value-based customer grouping from large retail data sets," Proc. SPIE 4057, Data Mining and Knowledge Discovery: Theory, Tools, and Technology II, (6 April 2000); https://doi.org/10.1117/12.381756