Author(s)

Zixuan Hu, Yuxin Li, Jiachen Wang

Corresponding Author

Zixuan Hu

ABSTRACT

Customer segmentation is essential for customer-oriented industries. By treating customers differently, the company can win preference with a wider range of customers. In order to accomplish the goal more precisely and efficiently, several machine learning models including K-Means algorithm and Self Organized Maps are used. Customer segmentation is applied in numerous industries, among them, airline, retail market and electricity stand a dominate position, as in these areas, customer segmentation plays a more important part in making market strategies compared with other areas. Thus, this paper mainly focuses on categorical skills in these three areas, makes a timely review of the customers' classification, and puts forward the potential directions for the future. The review on customer segmentation may benefit investors for in-depth studies.

KEYWORDS

Customer segmentation, customer-oriented, airline, retail, electricity