Sales Campaign Targeting Using Clustering & Classification Techniques
Abdul 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
