Advanced clustering in retail industry

Abstract

This paper present an efficient and practical method for Oracle Retail Advanced Clustering, part of the Oracle Retail Advanced Science Engine. The objective is to develop the advanced clustering for customer segmentation application using Application Development Framework to help the retailers to monitor the effective-ness of marketing strategies and to allocate marketing budget more effectively by understanding customer needs.

Customer segmentation is a proposed new capability of Oracle Retail Advanced Clustering, part of the Oracle Retail Advanced Science Engine. It is in support of current and future customer-centric capabilities in many applications, including but not limited to: Category Management, and ORCA. Segmentation of a customer base into groups based on customer attributes and behavior is a necessary step to better describing and predicting of customer behavior, and provides a vehicle to enable customer-targeting of offers, pricing, assortment, and experience.