Customer Segmentation Based on a Collaborative Recommendation System: Application to a Mass Retail Company

Provided by: University of Mons
Topic: Tech & Work
Format: PDF
Identifying customer segments has been arousing interest in the literature for decades, for various reasons. This paper introduces a different way of segmenting customers in the retail sector based on shopping behaviors: unlike traditional criteria, the authors' segmentation criterion lies on items that they recommend shoppers to buy in the future, these recommendations being defined on what other shoppers, who act similarly in terms of shopping basket, buy. Their approach is thus made of two steps: first, products to be recommended to each specific customer are determined and second, customers are segmented following these recommendations.

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