Customer Segmentation Using SAS Enterprise Miner

Duration: 2.0 days

Emphasizing practical skills as well as providing theoretical knowledge, this hands-on course covers segmentation analysis in the context of business data mining. Topics include the theory of segmentation, as well as four main analytic tools for segmentation: hierarchical clustering, K-means clustering, RFM cell method, and SOM/Kohonen method.

Learn how to

• understand and apply both attitudinal and behavioral segmentation tools and techinques on customer data
• profile and validate segments
• evaluate stability of segments over time.

Who should attend: Anyone who wants to learn how to find meaningful segments in their customer data, focusing on practical business solutions rather than statistical rigor; business analysts, managers, marketers, programmers, and others can benefit from this course

Prerequisites

Some prior exposure to SAS is useful, but not required. No experience with SAS Enterprise Miner or SAS Enterprise Guide is required.

Course Contents

Introduction

• define customer segmentation
• business context of customer segmentation

Segmentation Basics

• segmentation bases
• segmentation descriptors
• segmentation methods

Hierarchical Clustering for Segmentation

• introduction to clustering analysis
• similarity, distance, and distance metrics
• types of clustering

Applications of Hierarchical Clustering

• finding segments in B2B customer survey data
• modifying segments in B2B customer survey data
• profiling segments with bases
• applying Ward's method to find segments in B2B customer survey data
• validating segments with descriptors and other managerially important variables

k-Means Clustering

• mechanics of k-means clustering
• applications of k-means clustering
• scoring new data
• evaluating stability of cluster solution over time

A Priori Segmentation Using RFM Cells

• application of RFM cell-based segmentation

Product Affinity Clusters

• application of product affinity in segmentation

Variables Selection, SOM/Kohonen, and Take-aways

• variables selection for segmentation
• SOM/Kohonen for segmentation
• wrap-up and take-aways

Software Addressed

This course addresses the following software product(s): SAS Enterprise Miner.

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