NCR Corporation
Data-Driven Segmentation and Clustering

Abstract:

Item codes are mapped to multidimensional space as item vectors based on each item codes context relevant to other item codes in a product catalogue. A transaction history for a given customer is obtained and each item vector associated with a corresponding item purchase made by that customer is obtained. All item vectors per customer are summed to create an aggregated and single vector representing the purchase history of each customer. The aggregated customer-item vectors for the customers are plotted in the multidimensional space. The plotted customer-item vectors are then clustered into groupings based on their distances from one another in the multidimensional space; the groupings representing data-driven customer segments. The data-driven customer segments along with customer identifiers for the customers comprising each segment are provided as input to promotional engines and/or loyalty systems.