Int. J. Business Forecasting and Marketing Intelligence, Vol. 6, No. 2, 2020 99
Copyright © 2020 Inderscience Enterprises Ltd.
Machine learning based classification and
segmentation techniques for CRM: a customer
analytics
Narendra Singh
GL Bajaj Institute of Management and Research,
Knowledge Park-III,
Greater Noida, Uttar Pradesh, 201306, India
Email: narendra.naman09@gmail.com
Pushpa Singh*
Delhi Technical Campus,
Knowledge Park-III,
Greater Noida, Uttar Pradesh, 201306, India
Email: pushpa.gla@gmail.com
*Corresponding author
Krishna Kant Singh
KIET Group of Institutions,
Delhi-NCR, Ghaziabad,
Uttar Pradesh, 201206, India
Email: krishnaiitr2011@gmail.com
Akansha Singh
ASET, Amity University,
Uttar Pradesh, Noida, 201313, India
Email: akanshasing@gmail.com
Abstract: Machine learning and data mining help companies to build a tool
that can make and take actions based on customer knowledge and information.
Customer information is the base of maintaining long term relationship with
customers and also known as customer relationship and management (CRM).
Classification and segmentation of customer data set is utilised to maintain
efficient relation with customers and subsequently increase the profitability and
productivity. In this paper, author proposed customer segmentation based on
demographic properties like gender, age and spending score and analysed the
data set for interesting fact. The derived attribute data set is investigated for
classification. Classification is used to categorise each customer into a number
of classes, i.e., ‘gold’, ‘silver’, ‘elite’ and ‘occasional’. Comparison of different
classification algorithm is simulated by WEKA tool. Multi-layer perceptron
(MLP) is found as the best classification algorithm with an accuracy of 98.33%
compared to Naïve Bayes, regression and J48.