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Sales Campaign Targeting Using Clustering & Classification Techniques

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

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