273x Filetype PPTX File size 0.53 MB Source: indico.brin.go.id
OUTLINE OF THE PRESENTATION
Generating
01Introduction Recommendations 04
The Proposed
02 Solution Next Steps 05
Clustering The Customers
03
01
Problematic
The floating Customer loyalty
The popularity of smartphone The change of the way of how marketing is done
The growing role of wireless technologies in people’s life The marketing decision-makers must focus on one-
The problem of excessive offers and promotions to-one marketing and personalized services
Recommender Systems
Discovering the customer behavior patterns
is the key enabler for the success of retailers
02
Problematic
Clustering the customers is usually the first step in the process of analyzing the
purchasing behavior in retail.
But most of studies construct models based on RFM Model:
Recency: refers to when the customer did the most recent transaction.
Frequency: refers to how often customers do transactions.
Monetary: refers to how much does a customer spend in our store.
The Problem: The RFM model captures only partial information of a real user state.
Exploit other parameters to extract meaningful
knowledge and understand the customer purchasing
habits 03
Problematic
The core Recommender System algorithm employs a hybrid approach:
Apriori Algorithm.
K-means algorithm.
To build a recommendation model, three phases are required :
1. Information collection phase: Collect the data about the customers, their movements and
their purchases.
2. Learning phase: Apply the machine learning algorithm to extract meaningful knowledge from
the data obtained in the previous phase.
3. Prediction/recommendation phase: Apply the algorithm to send recommendation or
prediction based on the customer’s preferences. 04
The Proposed Solution
In order to identify the behavior of customers, an important challenge for
retailers is collect all the data about the customers:
Their personal data
Their purchases
Their movements inside the mall
The data collected about the movements and the purchases of the customers
will help the marketing decision-makers to achieve better knowledge of
purchasing behavior and to apply the adequate marketing strategies.
05
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