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-menas 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 segementation

Segmentation Basics

• segmentation bases
• segmentation descriptors
• segmentation methods

Hierarchical Clustering for Segmentation

• introduction to clustering
• similarity, distance and distance metrics
• mechanics of hierarchical clustering

Applications of Hierarchical Clustering

• hierarchical clustering on a small data set (B2B attitudinal segmentation)
• modifying hierarchical clustering on the small data set
• profiling clusters with bases
• applying Ward's method on the full data set (B2B attitudinal segmentation)
• profiling and validating clusters using SAS Enterprise Miner's Segment Profile Node

k-Means Clustering

• mechanics of k-means clustering
• applications of k-means clustering for a catalogue (B2B behavioral segmentation)
• scoring new data and assigning cluster membership to new data
• evaluating stability of cluster solution over time

A Priori Segmentation Using RFM Cells

• applications of RFM cell-based segmentation

Product Affinity Clusters

• application of product affinity in segmentation for a catalogue company (B2B behavioral segmentation)

Wrap-up, Take-Aways, and Looking Forward

• additional topics related to segmentation
• applications of SOM/Kohonen for a catalogue company (B2B behavioral segmentation)

Software Addressed

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

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