Sales Campaign Targeting Using Clustering & Classification Techniques

3AI November 7, 2020

Japanese automobile giant, market leader in hybrid electric vehicles

Problem Statement

• Huge customer base (45M+), need to target existing customer for another vehicle purchase
• Cost of retention is lesser than cost of new customer acquisition, how to effectively retain customer

Solution Approach

• Data Input

• Model Dataset

• Dynamic K-means clustering to identify vehicle clusters with similar patterns

• Lasso Regression &  Multivariate Adaptive Regression

• Vehicles category based recommendation

Business Impact

• 30% reduction in email communications/campaigns for the same period with higher conversion from earlier campaigns

• Increase in revenue through demographic base segmentation

Critical Success Factors

• Customer Management
• Identification of key product opportunities